More bad news from the latest Meltzer article:
Ken Pavia, who has 12 fighters under contract to Elite XC, believes the contracts will be considered company assets in bankruptcy court and be up for sale to the highest bidder, if such a bidder exists, with the funds used to pay any outstanding debts as well as Showtime, which held a secured loan.
Elite XC contracts were non-exclusive, so if Pavia could get one of his fighters a fight, they could take it as long as it was approved by Elite XC and didn’t interfere with a scheduled fight. Right now, though, he’s under the impression that the fighters may not be allowed to fight until this mess is settled.
Many agents for contracted fighters have contacted UFC and Affliction, but neither side is able to negotiate until either the fighters are released from their contract or bankruptcy proceedings take place.
So much for fighters having bankruptcy clauses, and so much for being allowed to go and fight for other promotions until this gets played out in bankruptcy court.