Rapper is unable to avoid Chapter 7 liquidation
After working closely with a bankruptcy trustee to raise the funds necessary to repay creditors and exit bankruptcy without being forced to liquidate his assets, it appears that rapper Young Buck may soon have to begin placing his belongings up for sale. After a proposed contract renegotiation with the rapper’s record label failed to gain approval from label executives, Young Buck’s Chapter 11 bankruptcy will likely now become a Chapter 7, or liquidation, filing.
Young Buck, whose real name is David Darnell Brown, has worked with a court-appointed Chapter 11 bankruptcy trustee for almost a year. The trustee’s job was to investigate Young Buck’s financial situation and work to find a way for him to exit bankruptcy without being forced to liquidate his belongings.
In June, the rapper and his trustee filed a plan, which involved the modification of a recording agreement and distribution agreement with G-Unit Records and Universal Music Group, respectively. The modification would give Young Buck the income he needed to pay off his creditors and exit bankruptcy.
However, neither record company agreed to the modification, leaving Young Buck without the revenue that he had relied on. In bankruptcy court papers filed last week, the trustee stated that the proposed plan would likely not come to fruition, and that, as a result, there would be little likelihood that Young Buck would be able to reorganize his debt and exit bankruptcy, as previously believed.
Therefore, in order to repay debts to his creditors, Young Buck may be forced to enter Chapter 7 bankruptcy and liquidate at least some of his assets and other personal belongings.
Source: Wall Street Journal, “Young Buck Faces Liquidation,” Jacqueline Palank, Oct. 10, 2011