Post by pavel on Jan 10, 2016 17:54:02 GMT -6
A bankruptcy judge recently ordered regular monthly payments to the bank that has taken steps to foreclose on a Texarkana, Texas hotel and the Arkansas Convention Center.
Both are owned by Hiren Patel, M.D.
Late last year, a Patel-owned company, Krishna and Associates, filed for Chapter 11 bankruptcy just hours before Country Inn and Suites in Texarkana, Texas, was scheduled for a foreclosure sale on the steps of the Bowie County courthouse. The Chapter 11 filing halted the sale.
Since then, Midsouth has requested additional protection of the hotel asset, complaining that the hotel depreciates approximately $13,000 monthly and that putting off a sale of the property means the bank's chance of recouping the approximately $4 million it is owed decreases with time. The motion asks that Krishna be ordered to maintain insurance policies on the property. The bank's motion points out that Patel's full-time occupation is practicing medicine, not running a hotel.
"Debtor's principal member is a medical doctor practicing medicine in Texarkana and Dallas and also managing the Hotel Property and the Holiday Inn and Convention Center in Texarkana, Arkansas, another hotel owned, operated and controlled by Dr. Patel. Effective management of the Hotel Property has not materially changed over the past five years," MidSouth's motion states. "There have been multiple managers used to manage the property in a piecemeal fashion. Dr. Patel is not reasonably available to provide oversight and direction to debtor's operations and this 'part-time' and 'piecemeal' management style has not succeeded in the five years since the hotel began operations. Therefore, it is unlikely the debtor can propose an effective and confirmable plan of reorganization at any time in the near future."
Read more: www.texarkanagazette.com/news/texarkana/story/2016/jan/09/payments-ordered-hotel-bankruptcy-case/412918/
Both are owned by Hiren Patel, M.D.
Late last year, a Patel-owned company, Krishna and Associates, filed for Chapter 11 bankruptcy just hours before Country Inn and Suites in Texarkana, Texas, was scheduled for a foreclosure sale on the steps of the Bowie County courthouse. The Chapter 11 filing halted the sale.
Since then, Midsouth has requested additional protection of the hotel asset, complaining that the hotel depreciates approximately $13,000 monthly and that putting off a sale of the property means the bank's chance of recouping the approximately $4 million it is owed decreases with time. The motion asks that Krishna be ordered to maintain insurance policies on the property. The bank's motion points out that Patel's full-time occupation is practicing medicine, not running a hotel.
"Debtor's principal member is a medical doctor practicing medicine in Texarkana and Dallas and also managing the Hotel Property and the Holiday Inn and Convention Center in Texarkana, Arkansas, another hotel owned, operated and controlled by Dr. Patel. Effective management of the Hotel Property has not materially changed over the past five years," MidSouth's motion states. "There have been multiple managers used to manage the property in a piecemeal fashion. Dr. Patel is not reasonably available to provide oversight and direction to debtor's operations and this 'part-time' and 'piecemeal' management style has not succeeded in the five years since the hotel began operations. Therefore, it is unlikely the debtor can propose an effective and confirmable plan of reorganization at any time in the near future."
Read more: www.texarkanagazette.com/news/texarkana/story/2016/jan/09/payments-ordered-hotel-bankruptcy-case/412918/