AllHipHop.com is reporting that Block Entertainment has signed a distribution deal with Capitol Records to put out rapper Kollosus' first album.

It remains unclear exactly how Bad Boy's move to Interscope affects the deal that Block Entertainment had with Bad Boy to release albums as Bad Boy South. Diddy has said that any new artists he signs from this point forward will be Bad Boy/Interscope, which could indicate that there would not be an opportunity for Block Entertainment to put out new artists, like Kollosus, on Bad Boy.

During an appearance on BET's 106 & Park in October, Diddy also said that everyone who was on the Bad Boy roster is still on the roster. If this is true, then the artists that Block Entertainment distributed through Bad Boy would still be signed to Bad Boy. Namely, Boyz N Da Hood, Gorilla Zoe and Yung Joc.

Of course, Yung Joc has been publicly vocal about his unhappiness with his situation, with remarks generally targeted toward Block. In an interview on The Ed Lover Show Diddy said that he had washed his hands of the Yung Joc/Block Entertainment disputes and that it was between Joc and Russell "Block" Spencer. I don't know how likely another Boyz N Da Hood album really is at this point, so the primary remaining artist from the partnership would then be Gorilla Zoe.

The article also says that Block Entertainment severed ties with Bad Boy in 2007, which is incorrect. There were rumors at the end of 2007 that Atlantic had decided to no longer distribute them. But, Spencer himself came out and said they were false and that was in January of 2008.

Thanks Ricardo for the tip.