Armada Sues Legacy Over LMA Dispute
September 6, 2013 at 4:58 AM (PT)
ARMADA MEDIA is suing LEGACY COMMUNICATIONS in a dispute over income ARMADA believes it is entitled to collect for tower and transmitter site rental under an LMA-with-option-to-buy that was part of a sale and swap of several stations in NEBRASKA.
The suit, in NEBRASKA district court, details the negotiation process and alleges that LEGACY now claims that the lease payments made by LEGACY to its own GI FAMILY RADIO ENTERTAINMENT, LLC for the tower site are "a reimbursable operating expense and are not income attributable to and earned through operation of the Stations." The total of the lease payments over the first five years f the LMA would be $375,000; ARMADA says that any lease payments to GI FAMILY are credited back to LEGACY as income attributable to the stations and therefore are "a wash." The suit seeks a declaration that the lease payments are station income and that false representations to the opposite effect result in reformation or recission of the LMA (or that ARMADA and LEGACY never had a meeting of the minds over the deal due to ARMADA's mistaken assumption).
The deal in question involved the LMA of Country KZTL (WILD COUNTRY 93.5)/PAXTON-NORTH PLATTE, NE, Active Rock KRNP (ROCK 100)/SUTHERLAND-NORTH PLATTE, NE, Oldies KOAQ-A/TERRYTOWN, NE, Talk KOLT-A/SCOTTSBLUFF, NE, Classic Rock KMOR/GERING, NE, Rock KETT (99.3 HE ROCK)/MITCHELL, NE, Hot AC KOZY-F/BRIDGEPORT, NE, and KHYY (WILD COUNTRY 106.9)/MINATARE, NE to ARMADA MEDIA and ARMADA dealing Adult Hits KMTY and Oldies KUVR-A/HOLDREGE, NE to LEGACY.