Attempts by The Source’s co-founder and former co-owner David Mays to block a bankruptcy exit plan by Source Enterprises Inc. was overruled by a judge on Monday (October 1).

Mays and Raymond “Benzino” Scott were booted from their executive positions at The Source in 2006 after the magazine ‘s sales declines and lost  major support from advertisers. 

The magazine also fell deep into debt because of default bank loans , bad cheques and  a multi-million dollar sexual harassment lawsuit by a former  employee.

The lagging sales and the magazine’s mismanagement pushed the Source Enterprises Inc and its property , The Source  , to file for Chapter 11 bankruptcy last year.

Source Enterprises Inc. planned to jump itself and the magazine out of bankruptcy with a Chapter 11 reorganization plan which  would set up a trust  to collect cash for its creditors.

According  to The Houston Chronicle, Judge Arthur Gonzalez  approved  the Source Enterprises'  Chapter 11 reorganization plan earlier today. 

Gonzalez said Mays  failed to  produce any evidence  that he  had a better alternative for  the magazine’s creditors than the Chapter 11 plan.