The Nacogdoches Daily Sentinel is reporting today that a Lufkin court has ruled that Texas State Bank of Joaquin and the U.S. Small Business Administration may continue foreclosure proceedings against Hotel Fredonia.

The property’s parent company filed Chapter 7 bankruptcy last month, owing more than $5 million. Texas State Bank is the first lienholder and began foreclosure proceedings in December 2013 – a month after Hotel Fredonia owner Susan Reents filed for personal bankruptcy protection. She closed the property in November 2013.

She acquired the hotel for $2.5 million in 2008. The bank’s general counsel, Paul Clark, says the foreclosure sale is now scheduled for the first Tuesday in June, but that could change.