18 Aug2014
Written by CFB Blogger. Posted in Blog
S.E. Pack Hospitality Limited Partnership, the entity that once owned and, subsequently, closed
Hotel Fredonia, has filed for Chapter 7 bankruptcy in
U.S. Federal Court in Lufkin, Texas. Susan Pack Reents, owner of the hotel, will be able to have some of her debts expunged by the Chapter 7 bankruptcy but not all of them. Over $600,000 in federal tax liens, dating back to December 2012, have been levied against the property. These past-due taxes are not dischargeable by bankruptcy filing.
S.E. Pack Hospitality LP owes almost $1.8 million in unpaid principal, interest and late fees to
Texas State Bank. According to foreclosure documents filed by Texas State Bank, the hospitality company also owes over $76,000 in back taxes and more than $50,000 in insurance. A number of federal tax liens dating back to December 2012 have been also been brought against the hotel; the most recent for over $144,000.
From a news story on
KTRE (ABC) by Donna McCollum, “the bankruptcy filing came just minutes before a foreclosure sale on the third lien was to be sold on the Nacogdoches County courthouse steps”.
“’On the way to the foreclosure sale, outside the parking lot of the Nacogdoches County Courthouse, Keith Swearingen, the trustee under the deed of trust for Texas State Bank, received an e-mail from the law firm of Searcy and Searcy out of Longview indicating the emergency Chapter 7 proceeding. The bankruptcy filing constitutes an automatic stay of all foreclosure procedures and anything that happens past this point will have to be under the jurisdiction and consent of the bankruptcy court in Lufkin, Texas,’” said Paul Clark, an attorney for Texas State Bank.
Clark said the bankruptcy filing will further slow down the process of finding a buyer for Hotel Fredonia.
The bankruptcy filing also obstructs any possible negotiations with the second lien lender, Greater Texas Capital Corporation, a non-profit
Small Business Administration lender.
“In some cases they do proceed with a purchase and a buy out to protect the interest, but every case is evaluated on individual basis. Bankruptcy will change the view of that, and we’ll reconvene on it,” said Todd Buchanan, the president of Greater Texas Capital Corporation.
Hotel Fredonia closed last November; Reents said that the poor economy and lost accounts were the main reasons behind the closure. The iconic hotel opened in 1955, seeing a number of owners over the years. This is the second time the facility has closed due to financial reasons, reports KTRE.
Your debt is a serious matter that you need to deal with now. Filing for Chapter 7 or Chapter 13 personal bankruptcy is complicated. You need a knowledgeable and experienced bankruptcy attorney from
Client First Bankruptcy at your side to guide you through every intricate step. Log onto
www.clientfirstbankruptcy.com for important and up-to-date information on filing your personal bankruptcy or call us toll-free 800-383-6004 for your free initial consultation. We answer our phones Monday through Friday from 8:30 a.m. – 6:00 p.m. Central Time so you can get answers when you need them.
