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Taj Burrow Faces Legal Battle 0

WA surfing champ Taj Burrow could face court action after one of his sponsors lodged a Supreme Court writ against his management company.

The world No.2 has been named in a civil writ lodged last Friday by the company Great Waves Pty Ltd which owns the surf accessories brand Creatures of Leisure.

The writ says the Yallingup-raised Burrow agreed to a deal in August, 2005 through his management company TB Endorsements to a sponsorship deal with the brand.

The deal requires Burrow to use the Creatures of Leisure branded surf leash and deck grip, and in addition display as prominent as possible the company’s logo on surfboards, top and bottom.

Creatures of Leisure is also to have photographic rights of the surfer in advertising, first rights to any new sponsorship deal and be allowed to make a matching offer in the advent of a new offer after the deal lapses.

Burrow was paid $50,000 for the period between March last year and February next year which is when the deal expires.

But by letter dated May 6, this year, TB Endorsements stated an intention to no longer perform its obligations under the sponsorship agreement, the writ says.

Great Waves, which is based in Dunsborough, wants the court to order Burrow to continue with the sponsorship deal and its conditions.

TB Endorsements, of which Burrow’s father Vance Burrow is director, and the lawyer for Great Waves did not respond to requests for a comment on the court action.

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IRS Files Objection To
Source Interlink’s Reorganization Plan
0

Update to the Source Interlink’s débâcle, you remember the publisher of your favorite surfer/skater magazines.

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The Internal Revenue Service has filed an objection to Source Interlink’s plan of reorganization, claiming the magazine publisher and distributor owes more than $10 million in unpaid taxes.

The objection, filed last week in Delaware’s U.S. Bankruptcy Court, said Source’s reorganization plan cannot be confirmed because it does not ensure adequate payment of the IRS’ tax claims. The IRS said Source and its affiliates have not filed a “staggering” number of federal tax returns.

It was not immediately clear how the objection will effect Source’s emergence from bankruptcy protection. A Source spokesperson did not return a request for comment. An attorney with Source’s legal counsel, Pachulski Stang & Hutz, also did not return a request for comment.

Last month, the company, controlled by billionaire Ron Burkle‘s Yucaipa Cos., filed for Chapter 11 bankruptcy protection—saying it reached an agreement with its lenders to “eliminate approximately $1 billion dollars of existing debt” and privatize the company.

Source’s lenders also agreed to funnel $100 million in additional liquidity into the company. Source, in turn, agreed to pay “all of its vendors in full and on time.” Source said it expected to emerge from bankruptcy protection within 35 days.

The company also is seeking permission to borrow up to $385 million in post-petition financing as part of its plan to eliminate the $1 billion in debt, according to a report on Law360.com. It is said that Source owes its creditors about $733 million.

A number of other creditors have also filed objections to Source’s plan of reorganization. According to a Law360.com report, SINV LLC, one of Source’s landlords, filed an objection stating that the planned consolidation of Source’s affiliates could “hurt its claims.”

Automotive media company eVox Productions also objected to the plan, claiming, among a number of complaints, that it violates a licensing agreement it had with Source.

According to a report in the New York Post, a Source attorney said the IRS claims are current payroll taxes, not past-due back taxes.

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Xcel Supertubes Showdown Gears Up for Inaugural Year 0

The Xcel Supertubes Showdown is getting ready for its inaugural contest, with a full invite-only lineup and heat draw to be announced June 3 at the contest’s opening event.

With a waiting period of June 5 -21 at Jeffreys Bay, 16 invited local and Supers experts will compete for an enticing first-place prize of entry into the Von Zipper Wildcard Trials, yielding 3 slots into the main event of the Billabong Pro Jeffrey’s Bay WCT event.

Final selection of invitees and heat draws will be announced June 3 at the opening function (The Mexican Restaurant, J-Bay).

This 1-day contest will consist of four heats and a four-man final. The event is presented by Xcel and sponsored by DaKine, Von Zipper, Red Bull, Billabong, Nixon, and Sector 9.

For more information on the Supertubes Showdown opening event, please visit http://www.xcelwetsuits.com/