50 Cent spent at least part of his 41st birthday today (July 6) in bankruptcy court in Connecticut, in a hearing to determine whether or not his creditors would agree to a plan to reorganize his finances to pay off some $28 million in debt. Under the terms of the plan, approved at today’s hearing, the rapper would pay $23.4 million over five years, or between 74 and 92 percent of the amount of the various claims against him.
50, aka Curtis Jackson, III, filed for Chapter 11 bankruptcy 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 she made with her boyfriend on her website in connection with her 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 received only between 46% and 57% of their claims, and that 99.5% of the parties approved the plan.
To make it work, 50 agreed to an initial cash outlay 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 that it “could be financed largely, if not entirely, by the sale of [his] Property of Connecticut. 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 reorganization plan today, less than a year after he filed Chapter 11 to reorganize his financial affairs,” the 50s rep said in a statement provided. at Billboard. “Mr. Jackson’s plan to reorganize has received overwhelming support from his creditors and has been confirmed without objection. The consensual plan resolves all of his creditors’ claims and is the result 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 contacted the rapper’s attorney, who did not return requests for comment at press time. Of course, the court didn’t put a stop to the 1950s anniversary celebrations; earlier today he posted three photos on instagram of himself posing in a helicopter. Life could be worse.
July 7: This article has been updated with a statement from Rep. 50 Cent.