However, it appears that things are a lot worse than originally envisioned for the boxing company. According to newly filed court docs in the bankruptcy, SMS Promotions amended the amount of debt they owe to $2.3 million dollars versus the original $100K-600K estimate.
The amended schedules showed that along with the $2.3 million in liabilities the company only has $644,903 in assets. The majority of the assets the company has are in the form of gym equipment which totals $540,404, along with $9K in a checking account and 1K+ in petty cash.
SMS Promotions liabilities include $32K owed on a lease agreement, $2.3 million owed to Curtis Jackson aka 50 Cent in unsecured loans along with various other creditors.
It appears that 50 Cent dropped millions to launch the company but it failed to bring in a profit to pay him back on the loans thus far.
On June 26th, new documents were filed in the bankruptcy.
50 Cent says that he boxed competitively as a young man and has a long history of involvement in the boxing profession. He says his company has promoted boxing events across the states. The rapper states that when he was launching the company it was to be a joint venture with Floyd Mayweather. However, he says right before he launched SMS Promotions Mayweather was locked up in Nevada. 50 says he had no choice but to move forward with his business without Mayweather.
FYI: Mayweather was sentenced to 87 days in jail in the criminal case which he plead guilty to charges of domestic violence against his then-girlfriend Josie Harris.
SMS Promotions is in such dire financial straits that the rapper says he is currently figuring out if he needs to close his training facilities for his boxers, resulting in them having to train at home rather than in the state of the art gyms he opened for them.