Tunes Turn Sour: DJ Sbu’s Massiv Metro Drowns in Debt, Liquidation Looms
Renowned media personality and entrepreneur Sbusiso “DJ Sbu” Leope’s popular digital radio station, Massiv Metro, is confronting the possibility of liquidation due to outstanding debts.
Business Partners Leadership (BPL), a Johannesburg-based company, secured a default judgment against Massiv Metro for its failure to repay a sum exceeding R4 million. Subsequently, BPL is pursuing a similar default judgment against Leadership Twenty-20, a company established by DJ Sbu, as the latter acted as collateral for the delinquent loan granted to Massiv Metro.
DJ Sbu’s Massive Metro Loan Deal
Sunday World reported that Massiv Metro, represented by Tyrone Willemse, entered into a written agreement in which BPL extended a R3 million loan to the digital station on March 27, 2018. The loan was scheduled to be repaid in R100,000 instalments over 36 months starting from September 1, 2019.
Additionally, Massiv Metro agreed to remit 2% of its royalties to BPL, calculated on the higher of actual or projected monthly turnover. The station was also obligated to submit monthly management accounts and undergo an auditor’s verification of turnover.
Should the station default on royalty payments, the outstanding amount would incur finance charges aligned with the loan’s applicable finance charges.
Loan Deal Turns Sour
DJ Sbu’s Massiv Metro Drowns in Debt, Liquidation Looms [Image: DJ Sbu/Instagram]
BPL alleged that Massiv Metro violated the royalty agreement by neglecting to fulfil its terms and conditions, notably failing to pay royalties. Efforts were made to rectify the situation, including amending the agreements, but Massiv Metro still defaulted, leading to a default judgment against them on July 11, 2023.
Leadership Twenty-20, linked to DJ Sbu, is facing a default judgment due to acting as Massiv Metro’s surety and co-principal for the R3 million debt. The case between BPL and Leadership Twenty-20 is scheduled for a court hearing on August 16.
DJ Sbu refrained from comment, asserting that he no longer held directorial roles in both entities.
