Rahman files for bankruptcy!!!!

Rahman files for bankruptcy! By G. Leon and Scott Shaffer October 05, 2005 - With a multi-million dollar payday against Vitali Klitschko less than six weeks away, heavyweight contender Hasim Rahman has filed for Chapter 11 bankruptcy protection in Nevada. On his application to the bankruptcy court, Rahman listed debts of $2,016,755 to the Internal Revenue Service, $2,000,000 to Don King Productions, $500,000 to Monarch Sports Management, a company run by Don King's son Carl King and $362,862 to the State of Maryland. All of those debts, however, are still being disputed by Rahman. The filing comes just days before a new law makes it tougher to get debts discharged throught the personal bankruptcy process, and just days after Don King Productions asked a court to order that $2,000,000 of Rahman's purse for the Klitschko fight be paid directly to the compnay instead of to Rahman. As Boxingtalk reported Friday, if King has his way in his lawsuit, Rahman could receive virtually no money for fighting Klitschko. According to King's legal papers, Rahman signed a contract with King that contained a highly unusual provision that entitled King to receive 50% of Rahman's purse if King lost a purse bid for one of Rahman's fights. That scenario came to pass when Bob Arum's Top Rank, Inc. won the right to promote Klitschko-Rahman for a bid of $12.1 million. Because of a WBC ruling, Rahman should entitled to 35% of that amount, or about $4.235 million, absent the alleged obligation to King. Complicating matters is Rahman's tax problems. The IRS is poised to grab another $2 million or so from Rahman's purse. Adding King's claim, the IRS claim, the WBC's 3% cut of Rahman's purse (which would lighten Rahman's take by another $127,000) and King's attorney, Judd Burstein's request for $132,000 in legal fees, Rahman is threatened with the possibility of taking home virtually nothing for what should be a fight that ensures his family's financial security.