The results are in!
As I mentioned in my May 25th blog post, Curtis James Jackson III, better known as rapper 50 Cent (“Jackson”) was scheduled for his bankruptcy confirmation hearing yesterday (July 6th).
All impaired creditor classes voted in to accept Jackson’s proposed plan of reorganization (“Repayment Plan”). He filed his own declaration and the declarations of three professionals in support of his Repayment Plan at 11 am the morning of the hearing.
No one sought to cross exam the declarants however, the Court did have Jackson take the stand to confirm that he understood his significant repayment obligations under the Repayment Plan and that the were freely undertaken by Jackson.
The Court was specifically concerned with whether Jackson understood the terms of his settlement with Lastonia Leviston (“Leviston”).
Jackson affirmed his understanding that: 1) Leviston had an allowed unsecured claim in the amount of $6 million; 2) as long as he made the payments under the Repayment Plan, she would be paid a percentage of her claim with other unsecured creditors; and 3) if he defaulted in those payments for any reason, her claim is non-dischargeable and that she could pursue the full amount of her claim against him.
When questioned about the possibility of default, Jackson stated “That’s not going to happen.”
He swore that he was committed to making the payments under the Repayment Plan and believed he could make them.
The Court confirmed Jackson’s Repayment Plan and congratulated the parties and counsel for coming to consensual resolution of the differences that existed the first day they walked into her bankruptcy courtroom.
The Court further stated that is was pleased to confirm Jackson’s Repayment Plan – remarking that it was a significant event and praising Jackson for what it viewed as his very substantial effort to repay creditors.
If you want to read more on this significant event, several articles have been written on Jackson’s bankruptcy success story – Vibe, The Guardian, The Wrap, HipHopdx, NME, and TheYBF.
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 hries@foxrothschild.com.