Holladay Broadcasting Sues Debut Broadcasting Over Alleged Default
September 20, 2011 at 4:56 AM (PT)
HOLLADAY BROADCASTING OF LOUISIANA, LLC has filed suit in MISSISSIPPI U.S. Southern District Court against DEBUT BROADCASTING MISSISSIPPI INC., alleging that DEBUT defaulted on an $800,000 promissory note.
The note was part of the sale of Country WBBV (RIVER 101.3)/VICKSBURG, MS, and the suit claims HOLLADAY perfected its first lien and priority security interest in the station's physical assets and tower lease and that DEBUT's "failure to pay (on the note) constitutes an event of default."
The plaintiff says that the note contains a provision allowing it to accelerate the entire balance of the note -- $724,592 as of JULY 31st -- upon default.
HOLLADAY filed suit on SEPTEMBER 2nd and filed an amended complaint MONDAY (9/19).