Damon Dash — Auction Over His Stake In Roc-A-Fella Records Postponed Due To Back Taxes & Child Support Debt

Damon Dash

Damon Dash — Auction Over His Stake In Roc-A-Fella Records Postponed Due To Back Taxes & Child Support Debt

Damon Dash will get to hang on to his stake in Roc-A-Fella Records for a little longer.

An auction to sell off the one-third stake Damon Dash still owns in the company was scheduled for Thursday (Aug. 29). However, Judge Robert W. Lehrburger of the Southern District of New York pushed the auction back to Sept. 21.

The minimum price for the sale could now double, which would help him pay for his tax debt and back child support.

In fact, the purpose of the delay is to provide time to figure out who, among the creditors that Damon Dash owes, will get paid first, second, and so on.

Although the auction was scheduled to help Dash pay off the $823,000 he was ordered to pay movie producer Josh Webber after a civil lawsuit over a breached agreement, the city of New York then chimed in and said it wanted the $193,000 he owes in child support. The state of New York also said the auction can help Dash pay the $8.7 million he owes in back taxes.

Josh Webber said in court documents filed by his attorney on Monday (Aug. 26), that he, New York City, and New York State had agreed on how Dash’s debt would be prioritized, but needed more time, so asked for the auction to be postponed. Judge Lehrburger granted the motion on Tuesday (Aug. 27).

The bid for Dash’s stake will now be $3 million, instead of the initial $1.2 million. NYC will get the nearly $200,000 he owes in child support first, then the state will get its $1.7 million in tax debt. Webber will then be paid his $832,000, before the state is given the remaining $7 million in Dash’s back taxes. Dash will get to keep whatever is left.

Dash’s lawyer Natraj Bhushan said on Wednesday (Aug. 28) that Dash was

“not privy to these discussions, had no input on the same, and disagrees with the priority given.”

 Natraj Bhushan added that the order isn’t finalized yet and continued,

“We look forward to upcoming court conference so that all interested parties can be heard and the court can decide who gets what, and in what priority from the forthcoming public auction.”

What are your thoughts on the auction being postponed? Comment and let us know.

[VIA]