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The Source Owners Battle To Maintain Control Of Magazine
The Source Magazine's principal lender is off to a bad start in its attempt to take over the publication.
New York State Supreme Court Justice Richard B. Lowe said that he had doubts regarding Textron Financial Corp.'s legal strategy. The Source reportedly owes Textron $18 million and lost $11 million in the past four years.
Through its lawyer, Thomas Finn, Textron is requesting that Source Enterprises be placed into its control to prevent its executives, Dave Mays and Raymond "Scott" Benzino, from completely ruining the company.
David Finkler, an attorney for The Source, answered by saying Textron is a lender rather than a stakeholder, and therefore doesn't have the status to make the request. Mays sat in court as both legal teams battled over control of the self-proclaimed "Hip-Hop bible."
Judge Lowe seemed to side with the magazine when he asked Finn, "It's your position that any creditor of any business that is not being run to the creditor's satisfaction has a right to go into court and ask for a receiver to be appointed?" Judge Lowe said that he would put Textron's motion under submission.
During the hearing, Finkler mentioned that The Source received a stay on an eviction notice that would have forced them to exit its 23rd Street offices in New York this week, and that the magazine is negotiating a lease on a new space for half of the rent. Finkler then unsuccessfully requested for the judge to seal the record of the proceedings and prohibit both parties from speaking to the press.
"The preference of this state is against sealing court records," Judge Lowe stated. "You simply want it sealed so the public doesn't know there's litigation here? That application is denied."
Textron's lawsuit is just the latest in a series of legal issues for the legendary hip-hop publication. Recently, Dasun Allah, the magazine's Editor-In-Chief, turned himself into New York Police on charges of vandalizing a Jehovah's Witness assembly hall.
According to reports, The Source has also failed to file any state and/or federal income tax over the course of the last two years. Also, the magazine has not delivered issue subscription mailers the publication, and a lawsuit regarding that is still pending. The case states that nearly $3 million in bad checks, over the past nine months, have not been paid for.
Source: sohh.com
New York State Supreme Court Justice Richard B. Lowe said that he had doubts regarding Textron Financial Corp.'s legal strategy. The Source reportedly owes Textron $18 million and lost $11 million in the past four years.
Through its lawyer, Thomas Finn, Textron is requesting that Source Enterprises be placed into its control to prevent its executives, Dave Mays and Raymond "Scott" Benzino, from completely ruining the company.
David Finkler, an attorney for The Source, answered by saying Textron is a lender rather than a stakeholder, and therefore doesn't have the status to make the request. Mays sat in court as both legal teams battled over control of the self-proclaimed "Hip-Hop bible."
Judge Lowe seemed to side with the magazine when he asked Finn, "It's your position that any creditor of any business that is not being run to the creditor's satisfaction has a right to go into court and ask for a receiver to be appointed?" Judge Lowe said that he would put Textron's motion under submission.
During the hearing, Finkler mentioned that The Source received a stay on an eviction notice that would have forced them to exit its 23rd Street offices in New York this week, and that the magazine is negotiating a lease on a new space for half of the rent. Finkler then unsuccessfully requested for the judge to seal the record of the proceedings and prohibit both parties from speaking to the press.
"The preference of this state is against sealing court records," Judge Lowe stated. "You simply want it sealed so the public doesn't know there's litigation here? That application is denied."
Textron's lawsuit is just the latest in a series of legal issues for the legendary hip-hop publication. Recently, Dasun Allah, the magazine's Editor-In-Chief, turned himself into New York Police on charges of vandalizing a Jehovah's Witness assembly hall.
According to reports, The Source has also failed to file any state and/or federal income tax over the course of the last two years. Also, the magazine has not delivered issue subscription mailers the publication, and a lawsuit regarding that is still pending. The case states that nearly $3 million in bad checks, over the past nine months, have not been paid for.
Source: sohh.com
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