MADISON (WKOW) -- The Spanish train company Talgo is threatening legal action against the state of Wisconsin.
The state canceled a $166 million contract with Talgo, in which the company would maintain trains it built for a line from Chicago to Milwaukee.
The Legislature's Joint Finance Committee killed funding to plan the base. In a letter to Talgo, an attorney for the Department of Transportation said the state can no longer afford to make the payments required under the agreement and must end the deal.
A Talgo executive said the state can't back out that easily. She said her company will try mediation as a first step.
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