Source Founder Dave Mays Files For Bankruptcy Protection

[Mr. Humonculous]

Source Founder Dave Mays Files For Bankruptcy Protection, Majority Stake In Mag To Hit Auction Block
By Fawn Renee

The Source Magazine's founder and former CEO Dave Mays has filed for bankruptcy protection, temporarily halting an auction sale of his stock in the Hip-Hop publication.

The auction of his share was halted for a second time in light of Mays' declaration of bankruptcy yesterday morning (May 4).

Mays lost control of the magazine after defaulting on an $18 million loan from Textron Financial.

In March, a judge ruled that Mays willingly signed contracts giving Black Enterprise/Greenwich Street Partners the right to take control if he defaulted on debt obligations.

By not fulfilling these obligations, Mays lost control of the company, along with full ownership.

Mays' 82 % stake is being sought after by at least three suitors, including Marc Ecko, Earl "Butch" Graves in conjunction with Black Enterprise, and Partnership Equity.

"We found out about the bankruptcy claim at the same time everyone else did," Clint Cantwell, communications director for Ecko Unlimited told AllHipHop.com. "But overall, The Source is a great brand and certainly worth pursuing. I think it would be a great blend with us having Complex Magazine under our belt. So, we'll see how things work out at the auction, whenever the auction actually takes place."

Mays' attorney David Finkler declined to comment.

After Mays and his partner Ray "Benzino" Scott were ousted, Black Enterprise appointed former editor Jeremy Miller to the position of CEO of The Source.

Miller said he and his staff were anxious to see the court proceedings end.

"I hope the person who purchases [ The Source will keep the magazine as is, because we're on the right track to progress and get the magazine back to where it used to be," Miller told AllHipHop.com. "I would hope we don't have to start over. Right now, guys from Black Enterprise wouldn't have a problem if they owned the full share of the company."


http://www.allhiphop.com/hiphopnews/?ID=5643

[Jip]

ecko buying

which we all know

will will mean

any g-unit album = 5 mic's

[The "Untouchable" DJR]

Honestly I'm glad Dave and Ray got nothin' to do wit The Source anymore cause it was gettin' ridiculous what they were doin'...

[QuietTruth]

I never bought a Source Mag in my life!

I read them in the store. Never purchased. Benzino is a faggot anyways. And Oh well to Dave 

[Diabolical]

magazines suck, you get much better information on the net without pages of adverts and bias.

[jeromechickenbone]

magazines suck, you get much better information on the net without pages of adverts and bias.

I pretty much agree with that.  But even on the net cats are biased.  I've never really relied on mag reviews when I decide to buy an album.  Especially with how prevalent payola is nowadays.  My favorite hip-hop related mag is def Scratch.  No fluff bullshit, just about music and tech associated with it.  If you hate all of the fucking hype of The Source / XXL, its a nice alternative.

[QuietTruth]

Murderdog is a good mag. They get right to the point on everything and they got artists who are on the come up. That's a good magazine to pick up. Hardcore shit 

[TraceOneInfinite Flat Earther 96']

I never bought a Source Mag in my life!

I read them in the store. Never purchased. Benzino is a faggot anyways. And Oh well to Dave 

^^ They still make money off of that, because you are peepin the advertisements

[QuietTruth]

I never bought a Source Mag in my life!

I read them in the store. Never purchased. Benzino is a faggot anyways. And Oh well to Dave 

^^ They still make money off of that, because you are peepin the advertisements

How's that supporting them? If I buy something they advertising, the advertisers help the mag run...is that what you mean?