Bank sues doctor, wife
MidSouth seeks more than $2.5M for hotel debt
A Texarkana doctor and his wife are being sued by a local bank hoping to recover more than $2.5 million in outstanding debt on a Texarkana, Texas, hotel.
A petition filed Nov. 9 in Bowie County District Court by Midsouth Bank seeks a money judgment against Dr. Hiren Patel and his wife, Nila, for the balance remaining on a loan for Country Inn and Suites in Texarkana, Texas. The bank is asking for $2,838,557.13 plus interest from Nov. 4 to the date of a judgment, according to a petition filed by Texarkana lawyer Robert McGinnis Jr.
A foreclosure sale of the hotel was halted when Patelowned Krishna and Associates filed for Chapter 11 bankruptcy hours before bidding was to begin Nov. 3 on the steps of Bowie County Courthouse in New Boston. Chapter 11 bankruptcy allows for a reorganization of debt, usually by a company or corporation.
The Patels have not personally filed for bankruptcy.
Because the Patels are “individual guarantors” on the defaulted loan, the bank can go after them personally for a money judgment. If the Patels file for personal bankruptcy, it could delay proceedings.
Patel and his wife have not responded to the Country Inn and Suites suit. However, the couple and Patel-owned Texarkana Hotels LLC have responded to a suit Midsouth filed Oct. 30 seeking to foreclose on Arkansas Convention Center in Texarkana.
Little Rock lawyer Don Overton filed a motion to dismiss the convention center foreclosure suit Wednesday. The motion complains that the Patels and Texarkana Hotels weren’t properly served with the suit.
Midsouth’s complaint for foreclosure of Arkansas Convention Center alleges the Patels and Texarkana Hotels have defaulted on more than $10 million in loans. Foreclosure allows a lender to liquidate collateral to satisfy past-due debt.
The suit seeking to foreclose on Arkansas Convention Center is pending before Miller County Circuit Judge Carlton Jones. No hearings are currently scheduled.
The suit seeking a money judgment against the Patels for the Country Inn and Suites debt is pending before Bowie County District Judge Leon Pesek Jr. No hearings are currently set.