News Headlines

Texas State Bank lone bidder for Hotel Fredonia at Tuesday's foreclosure sale

Texas State Bank of Joaquin was the lone bidder on the third lien during a foreclosure sale of Hotel Fredonia Tuesday morning on the courthouse steps in Nacogdoches.

 

The bank’s general counsel, Paul Clark purchased the hotel for just over a half-million dollars ($508,985) of offsetting credit on the note and the account of SE Pack Hospitality.

 

Proceedings were stopped last month when Chapter 7 bankruptcy was filed by SE Pack Hospitality.

 

It’s reported there are parties interested in the hotel, but Clark said there are note at the present time. He added negotiations will continue over the next month to see if an agreement can be kept in place to keep the first and second lien financing.

 

Texas State Bank is the first lienholder, while the second lienholder is U.S. Small Business Administration.

 

Susan Reents closed the Hotel Fredonia in November last year.

 

She said between the mortgages and the federal tax liens there’s around $5 million owed.

Roughriders Sports

Family Features

Loading Family Features Content Widget
Loading Family Features Article