It’s too early to tell whether Curtis James Jackson III, better known as rapper 50 Cent (“Jackson”), will be able to come to a consensual Chapter 11 plan for repayment with creditors. However, based on the recent 2 hour status conference and hearings on various motions, the outlook is hopeful. Jackson’s counsel indicated that they expect to file a consensual Chapter 11 plan of reorganization (“Plan”), or at least have narrowed the disputed issues relate to any proposed Plan, in 90-120 days. Jackson’s professionals are currently working on projections and laying the groundwork for a meaningful conversation with creditors on a proposed repayment plan.
In the meantime, Jackson’s counsel announced that he would soon be filing motions to employ brokers to sell Jackson’s Farmington home and Atlanta condominium. These will be part of the money and assets used to repay creditors. In addition, Jackson’s counsel indicated that Jackson has had a successful business history in promoting and improving the profitability of consumer brands. Accordingly, Jackson is currently engaged in discussions for promotional agreements that will provide additional funds used to repay creditors. It is also Jackson’s contention that he has a contribution claim against Rick Ross because Ross posted the video that is the subject of the Lastonia Leviston’s litigation first, before Jackson’s involvement. This contribution claim may make additional funds available for distribution to creditors. Jackson’s counsel indicated that his Plan will likely be for a term of 5 years.
With respect to the hearings set on Lastonia Leviston’s request to take the Rule 2004 Examination of Jackson and GSO Business Management, LLC (through Michael Oppenheim), the parties are going to work on a consensual order which provides that there will be one examination for each examinee where major creditors will be able to ask questions. Jackson’s counsel said that Jackson is generally willing to provide financial information to creditors over the next 60 days. The parties are attempting to negotiate issues related to the governing process for the examination, including the timing and scope of the examination. Similarly, the parties have agreed to work on consensual orders approving the employment of Jackson’s professionals. If the parties are not able to come to a consensual agreement, they will seek further intervention from the Bankruptcy Court.
Will Jackson and the creditors be holding hands and singing “Kumbaya” over a consensual Chapter 11 Plan in 90-120 days? We shall see how the case unfolds over the next 90 days and where things stand after the next status conference scheduled for September 18th.
Heather L. Ries is an attorney with the Financial Restructuring and Bankruptcy Department of the law firm of Fox Rothschild LLP. Heather focuses her practice in matters related to bankruptcy, creditors’ rights, commercial workout and foreclosure disputes, and commercial litigation. You can contact Heather at 561-804-4419 or firstname.lastname@example.org.