50 Cent’s boxing company files for bankruptcy

50 Cent's boxing company SMS Promotions has filed for bankruptcy.

The In Da Club rapper formed the sports business in 2012 and signed big names including then-undefeated champion Yuriorkis Gamboa, James Kirkland and Olympic medalist Andre Dirrell. However, TMZ reported that the company filed for Chapter 11 on May 25 in Connecticut.

50's attorney quickly released a statement on Tuesday to say that the decision had been made for the benefit of the business, not to its detriment. The message continued that there are plans to rebrand and come back a stronger entity.

"Under the direction of Mr. Jackson, SMS Promotions looks forward to reorganizing as a new corporate entity and becoming one of the leading promotion companies in the world of professional boxing," his lawyer told the outlet.

The bankruptcy filing also meant that another court case involving the musician was affected.

The star was also facing a defamation case in New York State Court after a woman called Lastonia Leviston sued him back in 2010, claiming that he violated her privacy by posting a video of her having sex with her boyfriend on the Internet.

The Candy Shop singer superimposed his own photo onto the male in the video so that the tape would taunt his rival Rick Ross, who is the father of Lastonia's child - although he was not the man in the footage.

50's lawyers were scheduled to appear in Manhattan Supreme Court at 11 a.m on Tuesday to pick a jury for the long-awaited civil trial. But after the bankruptcy filing, his lawyers contend that since he is the primary owner of SMS, this means he too is protected from lawsuits by bankruptcy law. They have now moved to have Lastonia's case to federal jurisdiction.