Judge Says 50 Cent Only Worth $20 Million In Assets

A federal bankruptcy court judge on Wednesday gave preliminary approval to a statement detailing assets of nearly $20 million of hip-hop businessman Curtis James Jackson III, who is known as 50 Cent, and millions of dollars in payments to settle claims by creditors.

Judge Ann M. Nevins praised lawyers, including Patrick J. Neligan, who represents 50 Cent, and lawyers for the U.S. Trustees Office.

Lawyers worked "very hard to reach a compromise mechanism," Nevins said at the end of the more than one-hour session in Hartford.

A third and final disclosure statement that will include changes such as a provision calling for a bond will be submitted May 27. The plan, which is backed by 50 Cent, is intended to provide information to those with claims against him before they vote on a reorganization plan.

Between 30 and 35 claim holders will be eligible to vote, Neligan said.

The plan lists assets such as 50 Cent's $8.25 million Farmington house, cash and securities valued at $10.6 million and a Bentley valued at more than $167,000. Claims against 50 Cent are valued at $32.6 million, according to the disclosure statement.

The plan calls for 50 Cent to pay up to $23.4 million over five years and 70 percent of the proceeds of a $17.2 million malpractice claim against lawyers, or $12 million.

The plan also includes a settlement between 50 Cent and his three largest creditors: Sleek Audio LLC, Lastonia Leviston and SunTrust Bank Inc. It also resolves litigation and liquidates the three largest unsecured claims against him.

50 Cent "believes that reorganization under the plan is feasible and that the plan provides for the greatest recoveries" for the claim holders, the disclosure statement says.

His financial problems are the result of losses at several startup ventures, investments and new businesses, the disclosure statement said. He lent or advanced about $6.4 million in 2013 to fund the operations of several business entities and $2.5 million in 2014.

50 Cent sought bankruptcy protection because he was "engaged in costly and highly contested lawsuits" with Sleek Audio over the manufacture and sale of headphones and a $7 million verdict against him for posting a sex tape of Leviston to his website.

She later agreed to a $6 million settlement to be included in 50 Cent's bankruptcy reorganization plan.

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