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Last Updated: Wednesday, 5 April 2006, 04:59 GMT 05:59 UK
Rap producer files for bankruptcy
Marion 'Suge' Knight
Marion 'Suge' Knight has missed a number of court hearings
Rap music mogul Marion "Suge" Knight has staved off receivership by seeking bankruptcy protection for himself and his music label, Death Row Records.

The record producer had been ordered to pay more than $100m (57m) to a former associate who said she had helped start the record label in 1989.

Lawyers for Mr Knight said he did not have the money to pay the judgment, and was forced to seek federal protection.

The label helped launch the careers of rappers such as Snoop Doggy Dogg.

Frozen assets

In March 2005, Mr Knight was ordered to pay former associate Lydia Harris $107m after she claimed she helped co-found the label in 1989.

Her former husband, Michael Harris, an imprisoned drug dealer, later claimed he put up $1.5m (863,200) to help start the record label and argued he was entitled to take half of the $107m as a result.

In August 2005, Mr Knight's assets were frozen and all of the parties involved have been fighting in court ever since.

Mr Knight failed to appear on Saturday for a court hearing and that, in turn, led to legal action which would have placed his company in receivership - something he and the company could avoid, in accordance with US law, by filing for bankruptcy.

The BBC's Emilio San Pedro in Miami says the bankruptcy motion was filed hours before a hearing at which the company might have been placed in receivership.

Mr Knight's lawyer, Laurence Strick, said his client would continue to operate the company while the bankruptcy matter goes forward in federal court.

Mr Strick said Mr Knight was attempting to reorganise his financial affairs and that his client remained "optimistic" and "focused".




SEE ALSO:
US rap label faces receivership
24 Mar 06 |  Entertainment
Judge freezes rap mogul's assets
13 Sep 05 |  Entertainment
Shot rap boss leaves US hospital
07 Sep 05 |  Entertainment
Rap boss shot in leg in nightclub
28 Aug 05 |  Entertainment
Death Row in profits legal battle
27 Feb 02 |  Entertainment


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