Birdman's Hit Factory recording facility is reportedly in jeopardy.
EMG Transfer Agent, i.e. the same EMG that claims Birdman defaulted on a $12 million loan, is said to be "seeking to take control" of Hit Factory Criteria Recording Studios. According to a report from the Blast, documents filed earlier this month show that EMG believes Birdman has rent from recording studio clients he's failed to turn over to them. Birdman, however, has responded in Blast-cited court documents by alleging that Hit Factory is instead merely a "developmental arm" of the Cash Money empire used for up-and-coming artists.
If the studio is taken from him, Birdman reportedly argued in court documents, he stands to miss out on "the next Lil Wayne." Additionally, he’s concerned that young artists won't be inclined to use the facilities if he's forced to relinquish control of the property.
Earlier this week, we learned of a new lawsuit against both Birdman and Lil Wayne alleging that Tyga was owed royalties for his Young Money years. Tyga's Careless World: Rise of the Last King and Hotel California were released via Young Money/Cash Money/Republic in 2012 and 2013, respectively. Tyga made his studio album debut back in 2008 via Decaydance, the label founded by Fall Out Boy's Pete Wentz.
