Bankruptcy-Trustee To Take Control Of Death Row Records
A judge has ordered a bankruptcy-trustee to take control of Marion "Suge" Knight's Death Row Records, ruling that the label has been mismanaged due to accounting practices.Judge Ellen Carroll ruled Friday (July 7) that the label's accounting practices were in "disarray," after noting that Knight testified he hasn't reviewed financial statements in almost a decade.
Knight's attorney Daniel McCarthy denied Caroll's claims and pointed out that the mogul had renamed the label Tha Row and was currently negotiating a distribution deal for the label's lucrative catalog, which includes hit albums by Tupac Shakur, Snoop Dogg, Dr. Dre, Tha Dogg Pound and others.
Knight was not present during Friday's court proceedings. According to his lawyers, Knight injured himself during a motorcycle accident last Sunday (July 1) and was under doctors orders to recuperate and also experienced a death in his family.
The mogul is also the subject of a new lawsuit filed by Lydia Harris. Lydia and her ex-husband Michael "Harry-O" Harris claim that Mr. Harris invested $1.5 million dollars in start up funds for the label, while he was incarcerated in the Metropolitan Detention Center, where he was awaiting trial in Federal Court for conspiracy charges.
The Harris' were awarded a default judgment in the amount of $107 million dollars after Knight missed numerous court dates to provide information about the labels financial status.
In April, Knight filed for bankruptcy protection to avoid the State Court from placing a receiver in Death Row, after Knight missed a number of court dates pertaining to a lawsuit filed by Michael "Harry-O" Harris and his wife Lydia Harris, who claim they own 50% of the label.
Caroll, who stated that "it seems apparent there is no one at the helm,” authorized the new trustee "owners" of Death Row Records to take the assets that are left from the label and convert them into cash to pay off creditors.
According to reports, the label has assets worth between $1 million and $10 million, but has more than $100 million in debts.