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Judge Clears The Way For Ouster Of The Source Founders

davemays

A New Jersey Superior

Court Judge lifted the Temporary Restraining Order (TRO) granted to The Source

founders David Mays and Ray "Benzino" Scott yesterday (Jan. 18),

allowing board members of The Source Entertainment Inc. to oust the two from

the company.

Mays and Scott filed for

a temporary restraining order on Jan. 12, after four of the six board members

agreed to terminate the pair from the magazine.

Board members said "Mays

and Scott could not continue their series of financial recklessness and negligence"

that was hurting The Source’s investors, vendors, subscribers and readers

and called for their immediate termination.

Yesterday, Judge Gerald

Escala lifted the TRO against Ed. A. Williams, Earl Graves, Jr., Ivan Hopkins

and Jeffery Scott.

An attorney representing

the board members said Mays had been officially "terminated" from

the company.

According to reports,

the two are plotting a legal strategy in New Jersey in an attempt to stop

the board from seizing the company.

The Black Enterprise/Greenwich

Street Fund invested $12 million in The Source in return for a minority stake

and seats on the company’s board of directors.

Representatives for The

Black Enterprise/Greenwich Street Fund also helped secure an $18 million loan

from Textron Financial Corp. for the magazine.

In Oct. 2005, Textron

asked The Source to be placed into receivership after the company defaulted

on the loan, but the bid was rejected.

The New York Post reported

that Jeremy Miller, former Chief Operating Officer of the company, will take

the role of CEO.

Mays could not be reached

for comment as of press time.

Temporary Restraining

Order : Page

1

Temporary Restraining Order: Page

2

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