Sour Melodies: DJ Sbu’s Massiv Metro Grapples with Debt, Liquidation Threat
Media personality and entrepreneur, Sbusiso “DJ Sbu’s popular digital radio station, Massiv Metro, is now at risk of liquidation due to mounting debts.
Business Partners Leadership (BPL), a Johannesburg-based company, has obtained a legal judgment against Massiv Metro after the station failed to repay a debt exceeding R4 million. Following this, BPL is pursuing a similar judgment against Leadership Twenty-20, a company created by DJ Sbu, as it provided security for the loan granted to Massiv Metro.
Loan Agreement By DJ Sbu’s Massiv Metro
As reported by Sunday World, Massiv Metro, represented by Tyrone Willemse, entered a written agreement with BPL on March 27, 2018, where BPL extended a R3 million loan to the digital station. This loan was intended to be repaid in R100,000 instalments over 36 months, starting from September 1, 2019.
In addition, Massiv Metro agreed to pay 2% of its royalties to BPL, calculated based on the higher of actual or projected monthly turnover. The station also committed to submitting monthly management accounts and undergoing audits to verify its turnover. Failure to pay royalties would incur finance charges aligned with the applicable charges of the loan.
Breach of Loan Agreement and the Unraveling
BPL claimed that Massiv Metro breached the royalty agreement by failing to adhere to its terms, particularly in not paying the required royalties. Measures were taken to address the situation, including amending agreements, but Massiv Metro still defaulted. This resulted in a default judgment against the station on July 11, 2023.
Leadership Twenty-20, associated with DJ Sbu, now faces a similar judgment due to acting as guarantor and co-principal for the R3 million debt. The case involving BPL and Leadership Twenty-20 is scheduled for a court hearing on August 16.
DJ Sbu declined to comment, stating that he no longer holds directorial positions in either entity.