Bank of America Pursuing Seizure of Madwell's Assets Due to Persistent Loan Payment Misses
Bank of America Chases Debt from Troubled Ad Agency Madwell
Bank of America is pushing to recover over $4 million from ad agency Madwell and related entities controlled by CEO Chris Sojka, who's known for his flamboyant lifestyle and aggressive behavior. The financial woes of Madwell have been mounting, even as Sojka splurged on a $17.5 million private jet and extravagant parties.
Court documents filed between January and March, reviewed by ADWEEK, reveal Bank of America's quest for an official judgment against Madwell. The bank also wants to seize any assets pledged as security for the loans, aimed at repaying the debt.
Last spring, Bank of America sued Madwell, Millwright, Get In Get Out, and Maple Syrup and Jam (doing business as Starfish) for defaulting on loans amounting to approximately $4 million. Bank of America initiated legal action when Sojka, the sole owner of these entities, displayed excessive spending habits coinciding with Madwell's financial problems.
By the end of October 2024, the total outstanding balance stood at approximately $4.59 million, consisting of a principal balance of about $4.04 million, plus interest, late fees, and legal fees. Despite a court-approved settlement on November 7, 2024, which required Madwell and the other defendants to make regular payments to Bank of America, the organizations defaulted on multiple payments, with over $4.1 million in principal and other charges still owed by January 6, 2025.
Sojka blamed previous executives for Madwell's indebtedness, claiming that the agency has made over $2 million in payments. He maintained that Bank of America had been "kindly affording Madwell breathing room to complete a turnaround." However, Bank of America is now requesting the court to enter a judgment and seize collateral to secure the loans.
Bank of America refrained from commenting on the ongoing dispute, while lawyers representing the bank at Chapman and Cutler could not be reached for comment. Sojka's fiery outburst directed at unpaid employees hints at the tumultuous situation facing Madwell.
- Bank of America is seeking an official judgment against Madwell and related entities, controlled by CEO Chris Sojka, due to a debt of over $4 million.
- The bank also aims to seize any assets pledged as security for the loans to repay the debt.
- Last spring, Bank of America sued Madwell, Millwright, Get In Get Out, and Maple Syrup and Jam for defaulting on loans amounting to approximately $4 million.
- The total outstanding balance as of the end of October 2024 was approximately $4.59 million, including interest, late fees, and legal fees.
- Despite a court-approved settlement requiring Madwell and the other defendants to make regular payments to Bank of America, the organizations defaulted on multiple payments.
- Lawyers representing Bank of America at Chapman and Cutler could not be reached for comment on the ongoing dispute, hinting at the tumultuous situation in the banking-and-insurance industry and finance business.
