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|02-06-2008, 11:11 AM||#1 (permalink)|
Nation Of Hip Hop
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Producer Teddy Riley In Financial Trouble, Puts Studio On The Market
In light of recent troubles with several creditors, legendary hit maker Teddy Riley - the "King of New Jack Swing" - is putting his Virginia Beach recording studio up for sale.
According to the Virginian-Pilot, the producer who has crafted hits for such stars as like Michael and Janet Jackson, Mary J. Blige and Keith Sweat as well as his own group, BLACKstreet, has amassed a $1 million tab to several creditors and is selling the studio to pay for the large debt.
The man, to whom VH1 recently payed trubute during last year's Hip Hop Honors ceremony, opened his Future Records Recording Studio in 1991. The one-story building was a state of the art facility valued at $3 million back then, but is now thought to be out of date. It is unlikely that the sale of the studio will relieve Riley of the debt, as it has been assessed at only $460,000.
During a court hearing this past Friday (Feb. 1) lawyers representing two different creditors to whom Riley reportedly owes money, agreed to seek a buyer for the studio.
Though both attorneys recognize that the studio is not necessarily up to date, Richard J. Conrod, Sr., a lawyer for one of the creditors, is hoping to sell the property as a working business instead of just real estate.
"I'm trying to save this iconic studio for the cultural heritage it represents," Conrod said. "It would be a shame for it to be mowed down or become anything but a recording studio."
The producer has apparently been buried in a sea of debt for the past several years.
In 2002, Riley filed for Chapter 11 bankruptcy protection. While he emerged a year later, the IRS filed a $1 million lien against him for unpaid income taxes in 2004.
Two years later Riley was forced to sell his home in the affluent Church Point neighborhood of Virginia Beach for $1.5 million to pay off federal and city taxes, as well as the home's remaining mortgage.
Riley's financial problems don't end there.
Last year the IRS filed another tax lien against him for $196,747 and just this past month the state of Virginia filed a $93,684 income tax lien against him.
The studio, which Riley is hoping to sell, has also seen it's share of financial controversy.
In 2005, Riley borrowed $700,000 against the studio from Equitable Relocation Services Inc. Defaulting on that loan, ERS won a $700,000 judgment against him the following year.
The company has reportedly been attempting to collect the money ever since, filing 22 garnishments against Riley's various bank accounts and assets. So far they have only received $261,000.
|financial , market , producer , puts , riley , studio , teddy , trouble|