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Posted By	Discussion Topic: Details on ECWs Bankrupcy
Mi1o Yambag	posted on 04-11-2001 @ 2:41 AM
O&A Board Regular Registered: Oct. 00	If anyone cares, hers all of the details about why they filed for bankruptcy and how much they owe to whom (sorry about the length): Full credit to Frank Jewett and John Williams for the following On April 4th, 2001, HHG Corporation, the owners of Extreme Championship Wrestling, filed for bankruptcy. This bankruptcy filing was not unexpected. It had been widely reported for several months that ECW was having trouble making payroll and could no longer afford to pay for television air time. What was not widely reported were the particulars of ECW's finances. In their bankruptcy filing, HHG Corp. claimed assets of $1,385,500 and listed debts of $8,881,435, which means HHG was roughly $7.5 million in debt when they ceased operations. An examination of the details of this bankruptcy filing gives insight into the business of running a wrestling promotion in general and into the final months of Extreme Championship Wrestling in particular. HHG owed money to wrestlers. HHG listed debts of more than $500,000 owed to at least 40 workers. These amounts may represent back wages or unpaid Pay-Per-View bonuses. The amounts range from $150,000 for Robert Szatkowski (Rob Van Dam) to $100,000 for Thomas Laughlin (Tommy Dreamer) to $50,000 for Terry Gerin (Rhino) to $47,275 for Francine Fournier to $21,250 for Michael DePaoli (Roadkill) to $12,000 for Don Callis (Cyrus) to $5,000 each for Yoshihiro Tajiri and Francisco Islas (Super Crazy) to "unknown" for James Mitchell (Sinister Minister) and Jerome Young (New Jack) to $0 for Terry Brunk (Sabu) and Steve Corino. HHG also listed a debt of $48,000 for Troy Martin (Shane Douglass). HHG owed money to their staff and to the professionals and companies that supported Extreme Championship Wrestling. Amounts owed to staff include $50,480 for Joseph Bonsignore (Joey Styles), $50,000 for Steve Karel, and $1,400 for Gabe Sapolsky. Other amounts include $140,000 for the law firm of Hoffinger, Friedland, Dobrish, and Stern, $50,000 for the accounting firm of Donohue, Gironda, & Doria CPA, and $11,700 for Discount Travel Services of Baton Rouge. HHG also owed money to television stations, radio stations, and production companies, along with other promotional expenses. These amounts included $244,000 for MSG (New York), $243,000 for American Cable Productions, $60,000 for Weigel Broadcasting (Chicago), and $64,000 for William Byrd Productions, producers of ECW on TNN. HHG debts included $75,000 for Stonecutter Productions, $35,000 for Stonecutter Event Promotions, $25,000 for Top Rope Productions, $16,000 for Fox Cable Networks, and smaller amounts for over a dozen television and radio stations from $2,475 for WEEI radio (Boston) to $2,000 for WUPA TV (Atlanta) to $1,135 for KSEZ radio (Iowa). HHG also owed money for rent, equipment, printing costs, and security related to ECW events. HHG owed $36,341 for BML Stage Lighting, $14,983 for Betz/Larson EventManagement, $14,068 for Atlas Protection, $9,883 for University of Minnesota, $5,953 for Elite Signs, $3,445 for TWC Advertising Sales, $2,500 for Lehigh University, and $1,579 for Mr. Printer Graphic Center, among others. HHG also owed money to former and current business partners. These amounts may represent commissions on goods already sold, payments for services already received,or payments such as deposits to fulfill contractual obligations. Amounts include $1,000,000 for Annodeus, a subsidiary of Acclaim, $300,000 for Farm Club Online, $250,000 for The Original San Francisco Toymakers, $150,000 for In Demand, ECW's PPV distributor, and "unknown" for TNN Cable, ECW's former broadcast network. HHG also had a number of curious miscellaneous allowances and debts. HHG allowed for "unknown" debts in at least five personal injury cases, including the Erich Kulas case. HHG owed $587,500 for World Wrestling Federation Entertainment, $1,242 for Time Warner Communications, and $14,455 for a 1998 Ford F800 truck which, according to the bankruptcy filing, is co-owned by Thomas Laughlin (Tommy Dreamer). HHG also listed debts owed to members of the Heyman family totalling $3.8 million. In total, HHG listed debts of $8,881,435 which doesn't include the "unknown" amounts owed to some workers or allowed for the settlement of the thirteen pending lawsuits and other potential litigation. With liabilities more than six times greater than declared assets, what are the odds that HHG creditors, including ECW workers, will collect? HHG claimed assets of $1,385,500. Assets included accounts receivable of $800,000 from In Demand, $50,000 from Acclaim, and $10,000 from Original San Francisco Toymakers. These amounts may represent estimates rather than actual receivables. Also, the companies who owe these amounts to HHG also hold receivables from HHG. Those liabilities may end up offsetting a portion of the $860,000 in receivables listed by HHG. HHG assets also included $19,500 for Tommy Dreamer's truck, $4,000 in merchandise, $2,000 in a bank in Jersey City, and $500,000 for an asset described as a "Tape video library."The actual value of the tape library is difficult to determine without knowing whether PPV events and ECW on TNN shows are included and without knowing what rights have already been sold or leased either in the US or in other countries. Also an estimated value is meaningless unless someone is interested in buying the ECW "Tape video library" for that price right now. The likelihood of collecting HHG debts seems slim at this point for most creditors, including former ECW wrestlers and staff. The receivables listed are probably optomistic estimates. The only other material asset is the ECW tape library and currently only one company, World Wrestling Federation Entertainment, is likely to be interested in acquiring that property. Dispersal of cash generated by the collection of receivables or the sale of assets would favor creditors with secured claims against HHG. And so the final chapter of HHG Corporation and Extreme Championship Wrestling has begun. It is a tale where hopes and dreams are ultimately replaced by dispair and debts. It is a tale that includes wrestlers, professionals, businesses, major corporations, partners, rivals, and family members. It is a tale which will not be fully told in public, but the pieces of this bankruptcy filing provide clues as to what ultimately became of HHG and Extreme Championship Wrestling. Smoke Weed Everyday
Rog2K	posted on 04-11-2001 @ 2:40 PM
O&A Board Regular Registered: Jan. 01	First WCW, now ECW. Did McMahon somehow find a way to resell his soul to the devil? Remember, amateurs built the Ark, professionals built the Titanic.

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