Since my February post, Curtis James Jackson III, better known as rapper 50 Cent (“Jackson”), objected to the appointment of an examiner, along with Sleek Audio, LLC, Suntrust Bank and Lastonia Leviston (“Largest Creditors”) and filed his own disclosure statement and plan of reorganization. According to representations made by Jackson’s counsel at the hearing, Jackson has reached an agreement with the Largest Creditors for payment of their claims and Jackson will be amending his plan to conform to that agreement on or before April 4th.
As you may recall, the U.S. Trustee’s office filed a motion for appointment of an examiner (“Examiner Motion”) on the basis that Jackson’s social media posts directly conflict with disclosures made in his court filings. According to the U.S. Trustee’s office Jackson’s social media posts suggested he had retained material amounts of cash while at the same claiming an ongoing inability to satisfy the claims of creditors.
Prior to the hearing, and as outlined in a recent article by the New York Times, Jackson filed response and affidavit stating, in a nutshell, that he his posts suggesting he had retained material amounts of cash were staged pictures of prop cash rather than the real thing and that he and that he has never owned any property in Africa.
Jackson appeared at the March 9, 2016 hearing on the Examiner Motion, but from the recording, did not speak a word. His counsel and counsel for the U.S. Trustee’s office presented arguments to the bankruptcy court for and against appointment of an examiner and the bankruptcy court has taken that matter under advisement. A status conference on any amended disclosure statement is scheduled for April 6th.
My August 2015 post asked should – Will Jackson and the creditors be holding hands and singing “Kumbaya” over a consensual Chapter 11 Plan in 90-120 days? 120 days have come and gone since then, but the next 120 days appear to hold great promise for tough guy rapper “Fiddy”. In 50 Cent’s own words “Sunny days wouldn’t be special, if it weren’t for rain.” 50 Cent, “Many Men (Wish Death),” Get Rich or Die Tryin’, 2003.
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 email@example.com.