Midwestern radio group owner Armada Media has been sued by its lender, Wells Fargo Foothill. But the Milwaukee Journal Sentinel reports that a request to put the company into receivership has been put on hold as Armada and the lender negotiate on a settlement.
Armada tends to draw an unusual amount of media attention because one of its principals is Tommy Thompson, former Governor of Wisconsin, former US Secretary of Health and Human Services and once a potential contender for the GOP presidential nomination.
Armada acquired its 28 stations just prior to the ad recession kicking in, so it is hardly surprising that it is one of many similarly situated broadcasting companies in difficult negotiations with its lender. According to the Journal Sentinel, Wells Fargo Foothill sued Armada in Fond du Lac circuit court, claiming that the radio group had defaulted on $16.2 million in debt.
“Everyone should be happy,” Thompson was quoted as saying of the settlement negotiations underway.