By January 6, despite the initial payments, Madwell and the other defendants still owed over $4.1 million, consisting primarily of $3.64 million in principal, plus various interest charges, late fees, and nearly $157,000 in attorneys’ fees. Interest continues to pile up at about $1,385 per day, court documents indicate.
Bank of America is now imploring the court to enter a judgment and allow it to seize collateral to secure the loans.
In a statement, Sojka blamed previous executives for Madwell’s debt, and said that “…Madwell has continued to service this debt, making over $2 million in payments and counting. Bank of America has continued to reserve its rights to take action while kindly affording Madwell breathing room to complete a turnaround. We are grateful for their support and professionalism in this trying time and are looking forward to reaching an amicable conclusion for all parties.”
Bank of America declined a request for comment. Lawyers representing the bank at Chapman and Cutler did not respond to requests for comment.
