American rapper 50 Cent has filed for Chapter 11 bankruptcy protection according to new reports in the US. Chapter 11 allows companies time to re-organise their finances while protecting them from creditors’ demands.
The rapper, businessman, and actor reported in court papers that he has assets and debts in the range of $10m to $50m (N1.9bn- N6.3bn), according to the Wall Street Journal.
The filing comes days after a jury ruled that he must pay $5m to a woman suing over a sex tape case.
The court case stemmed from a tape which leaked online in which the rapper is accused of adding a commentary to a tape that the woman made with her boyfriend.
In addition to the $5m penalty, the jury was due this week to consider punitive damages in the invasion-of-privacy lawsuit. However, it was unclear if this would go ahead. The Manhattan Supreme Court Justice Paul Wooten had requested that 50 Cent disclose details of his finances. However, the rapper’s lawyers told the court that he had filed for Chapter 11 in Connecticut, where he owns a mansion he bought from boxer Mike Tyson.
Later William A Brewer III, 50 Cent’s lawyer said his client’s business operations would continue. He said in a statement: “Mr Jackson’s business interests will continue unaffected in the ordinary course during the pendency of the Chapter 11 case, This filing for personal bankruptcy protection permits Mr Jackson to continue his involvement with various business interests and continue his work as an entertainer.”
In May, Forbes estimated 50 Cent’s net worth at $155m. ?What happened?