(CelebNMusic247-News) EXCLUSIVE: DMX Releases Statement to Bankruptcy Lawsuit
In regards to the WallStreetJournal reporting that The Justice Department is challenging DMX’s restructuring, claiming that the rapper’s bankruptcy has so far been filled with delays and inconsistencies, DMX Releases EXCLUSIVE Statement!
DMX has released this statement EXCLUSIVELY to CelebNMusic247 via his rep Domenick Nati:
“DMX did not receive any money that is mentioned in this lawsuit. Any financial transaction in this case took place solely between the booking agency and DMX’s former manager. DMX did not personally review, witness, or agree to the terms that are mentioned in this case.”
According to U.S. Trustee Tracy Hope Davis, a Justice Department official who monitors bankruptcy cases filed in New York, recently urged a judge to convert the rapper’s Chapter 11 case to a Chapter 7 liquidation, where DMX would be forced to sell off his assets to repay creditors or toss the rapper out of bankruptcy altogether. DMX filed for Chapter 11 protection, which allows for reorganization, in July.
Here’s the drop inwhich Earl Simmons aka DMX has released the above statement claiming that he “did not receive any money that is mentioned in this lawsuit.”
The watchdog’s request was prompted by the rapper’s failure to show up at a meeting of his creditors last month, to respond to Ms. Davis’s request for financial information and for filing court papers that are “in disarray” as well as inconsistent.
“The debtor’s actions have eroded the confidence of the Office of the United States Trustee and others that the debtor will be candid in the disclosure of his assets,” Ms. Davis wrote in court papers filed Friday.
Among the alleged inconsistencies Ms. Davis found in DMX’s court filings were his monthly income (one filing reported $5,000; another pegged it at $1,667) as well as the fact that he listed $0 worth of clothing among his assets yet has said he spends $1,000 per month on clothes.
Ms. Davis also pointed to a prior filing by DMX, in 2009, which the bankruptcy court dismissed after finding that the rapper “unreasonably delayed” the case, hurting his creditors. It’s a “pattern that continues” in his current bankruptcy case, Ms. Davis alleged. Read the full motion here.
Reached Tuesday, DMX’s bankruptcy lawyer declined to comment on the request, which the U.S. Bankruptcy Court in White Plains, N.Y., will consider at a Dec. 5 hearing.
We will keep you posted…
