Johnny Cash
Dec. 31, 2008 — Bringing a gut-wrenching issue to a conclusion, the Country Music Hall of Fame and Museum has reached a settlement with the estate of a businessman whose posthumous bankruptcy case could have forced the institution to relinquish historic instruments that formerly belonged to Johnny Cash, Bill Monroe and Mother Maybelle Carter, of the Original Carter Family.
The Hall of Fame filed documents in U.S. Bankruptcy Court Tuesday that would allow the museum to maintain possession of the instruments in exchange for $750,000, payable in full within 30 days after the court approves the settlement.
Bob McLean, a businessman who positioned himself as a philanthropist, had donated a pair of guitars formerly owned by Johnny Cash to the museum. In addition, he presented the organization another $1.5 million, which funded the purchase of Mother Maybelle’s 1928 Gibson guitar and Bill Monroe’s 1923 Gibson mandolin, two stringed pieces that played a major role in the development of country music and bluegrass.
McLean’s finances were built on a so-called "Ponzi scheme" in which investors were bilked out of $67 million over several years. McLean committed suicide this fall, leaving his estate to sort out the mess. The instruments are a perfect fit with the Hall of Fame’s mission, but the investors were clearly entitled to recoup as much of their investments as possible.
"Recovering gifts made to a non-profit organization poses a unique set of issues," estate trustee Robert Waldschmidt says. "Everyone involved in this lawsuit was sensitive to the historical significance of the instruments involved. However, the interests of the creditors in this bankruptcy proceeding, many who lost their life savings, could not be ignored either. This resolution is a fair compromise, and will benefit the bankruptcy estate and its creditors, while preserving the Museum’s collection of instruments."
The four instruments at issue in the case are currently displayed in a museum exhibit titled The Precious Jewel, named after a song associated with Hall of Famer Roy Acuff.
Tim McGraw’s manager, Scott Siman, and Museum Chairman Steve Turner are enacting a fundraising campaign to finance the settlement, which is already being backed by a loan from the Music Row branch of the SunTrust Bank. To make a donation to the cause, call Karen Fleming at the Hall of Fame at 615-416-2024.
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