The bank holding the note on Comfort Suites hotel in Texarkana, Ark., has filed for foreclosure.
MidSouth Bank, a Louisiana based lender, filed a complaint for foreclosure Monday in Miller County circuit court which accuses Texarkana Arkansas Hospitality LLC of defaulting on a $2.5 million dollar loan made for construction of Comfort Suites at 5420 Crossroads Parkway in April 2012.
The complaint lists TAH and California residents Sukhpal Singh and Harbans S. Grewal as defendants. According to the complaint, Singh, Grewal and another man, who isn’t listed as a defendant, were the members of TAH when the loan was made April 12, 2012, but that since then, interest in TAH has changed in violation of the loan.
The complaint for foreclosure alleges that TAH shifted about 45 percent of ownership interest in the hotel to three new members in violation of language in the loan agreement which prohibits transfer of 25 percent or more in ownership interest.
The complaint also accuses TAH of getting behind on approximately $15,000 in monthly payments. The complaint states that the company paid the past due payments but still owes about $20,000 in late fees. The foreclosure complaint further accuses TAH of failing to provide company financial statements and proof of property tax payments, in violation of the loan’s terms.
MidSouth gave TAH formal notice of the alleged default March 30. The March 30 letter from the bank to the defendants states that they must pay the loan’s balance within 60 days to avoid foreclosure. According to the complaint, TAH owes $2,281,903.79 in principal as of June 17. The complaint states that TAH owes $20,322.38 in late fees and that interest accrues at about $270 daily. In addition to the loan’s outstanding balance, MidSouth is seeking attorney fees and court costs.
The foreclosure complaint filed Monday by MidSouth has been assigned to Circuit Judge Brent Haltom in Miller County.