Trying to Sell a Grammy?
The National Academy of Recording Arts & Sciences Inc. (NARAS) is concerned about the Toni Braxton bankruptcy case and the future of six Grammys the singer won. According to NARAS, Grammys are not transferable and therefore cannot be sold during a bankruptcy to satisfy the payment of debts. NARAS voiced its concerns after an agreement involving the Grammys was struck between Braxton and the bankruptcy trustee.
The National Academy of Recording Arts & Sciences Inc., or NARAS, on Tuesday filed its response to a deal Braxton struck to ensure she gets to keep possession of such prized possessions as the Grammys as well as her Tiffany jewelry and 1995 Porsche 911. But if Braxton doesn't pay $125,000 to her creditors, the trustee overseeing her bankruptcy liquidation can seize and sell the property covered by the agreement.
According to NARAS, the deal doesn't adequately make it clear that Braxton's Grammys can't be sold without the organization's consent. The annual awards, which NARAS has been handing out since 1959, are nontransferable. NARAS said it'd be okay with the deal if the wording is tweaked to reflect these terms.
The bankruptcy court plans to consider NARAS' concerns in a hearing later this month; but it's not clear if the bankruptcy court will feel obliged to honor NARAS' "nontransferable" clause for the Grammys. Also, if they do honor NARAS' "nontransferable" clause, it may impact the deal depending on how much the Grammys have been valued at. Under the current terms of the deal, technically the Grammys could be auctioned off if Braxton fails to make the $5,000 monthly payments to the bankruptcy trustee.
(source: Blogs.WSJ.com )