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
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Temporary Restraining Order: Page
