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ARTICLE · 25 JANUARY 2016

Will Largest Creditors Decide 50 Cent's Financial Fate?

Fox Rothschild LLP
Fox Rothschild LLP
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In my August post, I stated that it was too early to tell whether Curtis James Jackson III, better known as rapper 50 Cent, would be able to come to a consensual Chapter 11 plan for repayment with creditors.

United StatesInsolvency/Bankruptcy/Re-Structuring
Heather Ries
Heather Ries
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In my August post, I stated that it was too early to tell whether Curtis James Jackson III, better known as rapper 50 Cent ("Jackson"), would be able to come to a consensual Chapter 11 plan for repayment with creditors. Jackson has not yet filed his own proposed plan of reorganization. However, it now appears that his largest unsecured creditors Sleek Audio, LLC, Suntrust Bank and Lastonia Leviston (holding $29 million in unsecured claims) have formed an alliance (the "Proponents") and late last week filed a joint proposed plan of reorganization ("Creditor Plan") that may ultimately decide Jackson's financial fate.

According to court filings, Jackson is not a proponent of the Creditor Plan and was not consulted about its terms or conditions. Whether the Creditor Plan will become a consensual Chapter 11 plan of repayment may be revealed at the February 18, 2016 hearing on approval of the Disclosure Statement for the Creditor Plan.

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