50 Cent's Birthday Present: No More Bankruptcy Court
50 Cent spent at least part of his 41st birthday today (July 6) in a Connecticut bankruptcy court, in a hearing to determine whether or not his creditors would accept a plan to reorganize his finances to repay some $28 million in debt. Under the terms of the plan, approved at today's hearing, the rapper would pay $23.4 million over the course of five years, equivalent to between 74 percent and 92 percent of the amount of the various claims against him.
50, aka Curtis Jackson, III, filed for Chapter 11 bankruptcy protection nearly a year ago on July 13, 2015. According to court documents filed yesterday in Connecticut, he owes money to Sleek Audio, SunTrust Bank and Lastonia Leviston, who successfully sued 50 for posting a sex tape that she had made with her boyfriend to his website as part of his feud with Rick Ross (Leviston and Ross have a child together). The documents note that if his estate were to be liquidated, creditors would have only received between 46 percent and 57 percent of their claims, and that 99.5 percent of parties have approved the plan.
To make it work, 50 has agreed to an initial cash layout of $7.4 million and an annual payment of $2 million over the next five years. As for the additional $6 million, his lawyer indicated it "could be funded largely, if not entirely, from the sale of [his] Connecticut property. Otherwise, the Additional Cash Contribution will be funded by the Debtor’s business activities and related business entities."
"Mr. Jackson is pleased that the Bankruptcy Court approved his plan of reorganization today, less than one year after filing for chapter 11 to reorganize his financial affairs," 50's rep said in a statement provided to Billboard. "Mr. Jackson’s plan of reorganization received overwhelming support from his creditors and was confirmed without objection. The consensual plan resolves all of his creditors’ claims and was the product of Mr. Jackson’s good faith negotiations with his creditors and their confidence in his future prospects. Mr. Jackson appreciates the fresh start this process provides and looks forward to continued success in his personal and professional pursuits."
Billboard reached out the rapper’s lawyer, who did not return requests for comment as of press time. Of course, court hasn't put a damper on 50's birthday celebrations; earlier today, he posted three photos on Instagram of himself posing in a helicopter. Life could be worse.
July 7: This article was updated with a statement from 50 Cent's representative.