In 1974, Taylor faced financial problems caused by setting up his own network to distribute CTI labels and made a new distribution deal with Motown. This, however, ended in litigation in 1977 with Taylor having to lose Grover Washington Jr. and the artist's Kudu recordings as part of the settlement to quit Motown. He also lost the rights to Bob James's solo recordings for CTI in a separate litigation. CTI went into Chapter XI bankruptcy in late 1978 before Taylor reached a distribution deal with Columbia Records the following year, in return for the rights to the remaining master recordings.