A troubling predicament has emerged for Massiv Metro, a prominent digital radio station established by Sbusiso "DJ Sbu" Leope, as it faces potential liquidation due to mounting financial difficulties. According to reports by Sunday World, the station is grappling with a default judgment secured by Business Partners Leadership (BPL), a company based in Johannesburg, over a debt of at least R4 million that Massiv Metro has failed to repay.
This financial turmoil has escalated, leading BPL to pursue yet another default judgment, this time against Leadership Twenty-20, an entity formed by DJ Sbu himself. Leadership Twenty-20 had acted as a security provider for a loan extended to Massiv Metro, a decision that has now put it in a precarious legal position.
According to documents from Sunday World, Massiv Metro, represented by Tyrone Willemse, had initially entered into a written agreement with BPL on March 27, 2018. Under the terms of this agreement, BPL granted a loan of R3 million to the digital radio station. The repayment structure mandated Massiv Metro to make R100,000 monthly payments for a span of 36 months, starting from September 1, 2019.
In conjunction with the loan, Massiv Metro also inked a royalty agreement with BPL, stipulating that the radio station must allocate 2% of its royalties, calculated based on either the actual monthly turnover or the projected turnover. The arrangement mandated Massiv Metro to furnish monthly management accounts to BPL by the first day of the subsequent month when royalties were due. Additionally, the station was obligated to provide an auditor's verification of its turnover.
Should royalties remain unpaid, the agreement detailed that the outstanding amount would incur finance charges aligned with the prevailing rate applicable to the original R3 million loan.
As per the report by Sunday World, the royalty agreement disintegrated when Massiv Metro failed to adhere to its terms, creating a rift between the station and BPL. An attempt to address this was made in June 2020 when Willemse and BPL renegotiated and ratified an updated version of the loan and royalty agreement. The aim was to facilitate Massiv Metro's repayment efforts. However, despite these revisions, the station still encountered difficulty in fulfilling its repayment obligations, ultimately leading to BPL obtaining a default judgment against Massiv Metro on July 11, 2023.
In light of Leadership Twenty-20's role as a guarantor for Massiv Metro's debt, BPL has commenced legal proceedings against this entity as well. The matter is set to be heard in court on August 16, as per the Sunday World report.
When approached for comment, DJ Sbu declined, clarifying that he is no longer involved in the management of either Massiv Metro or Leadership Twenty-20. The situation remains precarious as the legal proceedings continue, casting uncertainty over Massiv Metro's future. For more information, please refer to the original source: SundayWorld link.
