The owners of the convention center in Texarkana, Ark., filed for bankruptcy last week.
Dr. Hiren Patel and his wife, Nila, submittedapplied for chapter 11 bankruptcy Friday in a Texas federal bankruptcy court. The convention center’s management company, Texarkana Hotels, LLC, which is owned by Dr. Patel, filed for chapter 11 bankruptcy the day before.
The bankruptcy filings imply procedures in MidSouth Bank’s suit to foreclose on the building for default on about $10 million in exceptional financial obligation are remained. Two loans MidSouth made to Texarkana Hotels in 2012 for construction of the convention center are personally guaranteed by the Patels, meaning they might be held individually accountable for the debt.
Such was the case last month in Bowie County. A judgment awarding MidSouth near to $3 million for unpaid loans for Texarkana, Texas, hotel Nation Inn Suites was signed in March by 202nd District Judge Leon Pesek, Jr.
. The hotel’s management company, Krishna Associates, submitteddeclared bankruptcy in 2014 hours before the bank was arranged to auction the home on the steps of the county court house in New Boston, Texas. While that implied MidSouth was unable to foreclose on the genuinerealty, it did not stop it from taking action against the Patels, who had actually personally ensured the loans and had not submittedapplied for personal bankruptcy until Friday in federal bankruptcy court.
The pending bankruptcy suggests the bank can not pursue the Patels’ individual property to please the impressive Texas judgment or continue with foreclosure of the convention center without authorization from the federal bankruptcy court.