Manning Broadcasting Sues Nassau Principal Over Unpaid Note, Contract Amounts
January 23, 2012 at 4:41 AM (PT)
MANNING BROADCASTING INC. has sued NASSAU BROADCASTING principal LOUIS F. MERCATANTI, JR. in U.S. District Court in MARYLAND for failure to pay on a $3.5 million promissory note executed along with the sale of WARK-A/HAGERSTOWN, MD and WWEG/MYERSVILLE-HAGERSTOWN, MD to NASSAU.
MANNING alleges that under the "first amendment," the note was to be paid off in 24 monthly payments of $98,437.50 from SEPTEMBER 2, 2008 through OCTOBER 2, 2010. A 2009 second amendment allowed MANNING to terminate a restructuring and revert the note to the first amendment terms if the restructuring was not closed before DECEMBER 31, 2010; the restructuring never closed, NASSAU ended up in bankruptcy, and the bankruptcy court allowed MANNING to terminate the amendment and revert the promissory note terms to the first amendment provisions. MANNING now says that $1,082,812.50 is due and payable.
Also in the suit, filed by WASHINGTON law firm PILLSBURY WINTHROP SHAW PITTMAN LLP, MANNING alleges that NASSAU owes EUGENE J. MANNING and J. FREDERICK MANNING on their 10-year employment agreements; each is owed $736,000, the complaint claims. And the suit also says that MERCATANTI executed a guaranty with MANNING covering the note and employment agreements. MANNING is looking for the amounts due under the note and employment contracts plus interest, costs, and expenses.