Suge Knight Files For Bankruptcy To Avoid Losing Death Row

Rap mogul Marion "Suge" Knight and his Death Row Records label filed for bankruptcy on Tuesday in advance of a court ruling to put the company in receivership.

Knight was expected to lose control of Death Row and its music catalogue as part of a $107-million U.S. civil court judgment. Knight was supposed to have paid that amount to Lydia Harris, who claimed that the Death Row co-founder cheated her ex-husband Michael "Harry-O" Harris out of a 50-per cent stake in the label. By seeking bankruptcy protection, Knight was able to put off the court order that would have given control of his assets, including the company, to a receiver.

Knight's lawyer, Laurence Strick, said in a Reuters article that his client was left with no other course of action. He believes that Knight will be treated more fairly in federal bankruptcy court than in California court.

Knight, whose assets have been frozen since last August, was supposed to have fully disclosed his finances in a debtor's exam scheduled for April 1 if he wanted to petition the court to remove the receiver. But that opportunity went out the window when the hip-hop impresario didn't show up for the exam. Lawyers for the Harrises then filed a petition seeking the receiver and to find Knight in contempt of court. A judge elected not to find the 40-year-old in contempt.

"I think the $107 million, plus interest, is going to get paid," said Harry-O's lawyer, Steven Goldberg. "It's not going to be easy, but we're going to get him."

Harry-O claims that he and his wife put up $1.5 million in 1991 to help start Death Row, which launched the careers of Tupac Shakur, Snoop Dogg, Dr. Dre and other rap stars.

Harry-O is currently serving a 28-year prison sentence for drug dealing and attempted murder. He said he struck the original deal with Knight from his cell, which Knight denies.

Lydia Harris filed a suit against Knight in March 2005 and was awarded a settlement that included $60 million in punitive damages, $45 million in economic damages and $2 million in non-economic damages. Harry-O filed for divorce from his wife last June, but maintains that he's entitled to half of the award.

Knight and Death Row filed their own $106-million suit against Harry-O and others in February, claiming that he was blackmailing the label by threatening to allege that money made from his drug deals were invested in legitimate businesses like Death Row. Harry-O was also the producer of Denzel Washington's 1987 Broadway debut, Checkmates.

Knight is quite familiar with the court and penal systems, having served two prison sentences for parole violations since 1996.