Monday, May 14, 2007
Pour Some Liquor for The Source
It's always nauseating for man to come face to face with his inherent insignificance. History may repeat itself in perpetuity, but time is linear in nature--all things come to an end at some point, even the most seemingly indestructible monuments to civilization: the ancient empires of Egypt, Greece, Rome; even the mighty "Northwestern" will one day find itself moored at the depths of the Puget Sound or the Behring Sea. And yet, I don't think I could have ever prepared myself for the metaphysical ball-kick I received last week as I was reading our trade journal, the "Bankruptcy Law Reporter". Imagine my shock and anger when I stumbled across the following:
"...Source Magazine and its affiliate Source Entertainment, Inc., April 30 announced that they have filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York after dishonest business practices by former management caused the hip-hop media outlet's advertisers to pull out, according to news reports. The company, which publishes The Source, a monthly magazine devoted to hip-hop music and culture, also markets audio features, including cell phone ring tones and wallpaper, and produces promotional hip-hop music events, including the Source Awards, news reports indicate.
...Source founder David Mays and company president Raymond "Benzino" Scott were fired in 2006, after the magazine lost significant support from advertisers. The company also reportedly issued bad checks to former employees and creditors, and abruptly stopped sending magazines to some 140,000 subscribers...Three creditors filed an involuntary Chapter 7 bankruptcy petition for affiliate Source Enterprises, Inc. last July, claiming the company owed them $562,693.00. That proceeding was converted to a Chapter 11 proceeding in September.
...The Source was once considered the premier hip-hop publication in the U.S. The company listed consolidated assets of about $1.3 million and liabilities of $35 million on December 31."
There won't be a 300th.
Apparently all those Bentleys and Rolexes were leased after all. Or at least bought on credit. $35,000,000.00 of unsecured debt?! Chapter 11 exists to afford an insolvent company the opportunity to restructure its debt, reorganize its business operations, or a combination of both in the hope that it can emerge from bankruptcy protection as a viable economic entity capable of paying its creditors. Given the debt to asset ratio depicted in the Source filings, however, I think successful reorganization is unlikely. And that's sad. Deeply so.
In the wake of this discovery, I've already commenced the grieving process. My sadness is waning at this point, though I can already feel the anger and denial bubbling to the surface. Deal making is hardly a week away.
And so it goes. Another giant of civilization succumbs to the dust from whence it arose. R.I..P., Source. Por Vida.
"...Source Magazine and its affiliate Source Entertainment, Inc., April 30 announced that they have filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York after dishonest business practices by former management caused the hip-hop media outlet's advertisers to pull out, according to news reports. The company, which publishes The Source, a monthly magazine devoted to hip-hop music and culture, also markets audio features, including cell phone ring tones and wallpaper, and produces promotional hip-hop music events, including the Source Awards, news reports indicate.
...Source founder David Mays and company president Raymond "Benzino" Scott were fired in 2006, after the magazine lost significant support from advertisers. The company also reportedly issued bad checks to former employees and creditors, and abruptly stopped sending magazines to some 140,000 subscribers...Three creditors filed an involuntary Chapter 7 bankruptcy petition for affiliate Source Enterprises, Inc. last July, claiming the company owed them $562,693.00. That proceeding was converted to a Chapter 11 proceeding in September.
...The Source was once considered the premier hip-hop publication in the U.S. The company listed consolidated assets of about $1.3 million and liabilities of $35 million on December 31."
There won't be a 300th.
Apparently all those Bentleys and Rolexes were leased after all. Or at least bought on credit. $35,000,000.00 of unsecured debt?! Chapter 11 exists to afford an insolvent company the opportunity to restructure its debt, reorganize its business operations, or a combination of both in the hope that it can emerge from bankruptcy protection as a viable economic entity capable of paying its creditors. Given the debt to asset ratio depicted in the Source filings, however, I think successful reorganization is unlikely. And that's sad. Deeply so.
In the wake of this discovery, I've already commenced the grieving process. My sadness is waning at this point, though I can already feel the anger and denial bubbling to the surface. Deal making is hardly a week away.
And so it goes. Another giant of civilization succumbs to the dust from whence it arose. R.I..P., Source. Por Vida.
Labels: hilarious shit, media whores, Morrissey'sHair, overcompensation, rap, Title 11 United States Code, tragedy
Comments:
Links to this post:
<< Home
You had better post more often to warrant that "Title 11 United States Code" category you created!
And also, FYI, the Northwestern will NEVER rest at the bottom of the sea. When he is called by his Viking forebearers, Sig Hansen will sail that mighty bitch straight to Valhalla himself. Believe it.
Post a Comment
And also, FYI, the Northwestern will NEVER rest at the bottom of the sea. When he is called by his Viking forebearers, Sig Hansen will sail that mighty bitch straight to Valhalla himself. Believe it.
Links to this post:
<< Home
Subscribe to Posts [Atom]
