It looks like Holiday Springs Water Park LLC has sprung a leak.
Its lender, First National Bank of Hughes Springs of Texas, filed a foreclosure lawsuit against the Texarkana water park on Sept. 11 in Miller County Circuit Court.
The bank said in its filing that in 2012 the water park, through its authorized member, Dr. Hiren D. Patel of Southlake, Texas, borrowed $4.2 million.
The park then borrowed $150,000 in 2013 and $75,000 in 2014.
Holiday Springs “failed to pay the debts when due,” according to the filing by attorney Robert McGinnis Jr. of Texarkana, Texas. As a result, the bank “accelerated payment of the debts and they are now due and owing in full.”
As of Aug. 20, the amount owed totaled $4.87 million, the lawsuit said.
The bank wants a judgment for the amount with interest. It also is asking that a commissioner be appointed to sell the property.
As of Wednesday, Holiday Springs hadn’t responded to the complaint. And Patel couldn’t be reached for comment.
If Patel’s name sounds familiar, it’s because he was involved in a saga involving Texarkana’s competing convention centers nearly a decade ago that ended in bankruptcy.
If you recall, Patel’s hotel on the Texas side of the state line filed for Chapter 11 bankruptcy reorganization in 2015. In 2016, Patel filed Chapter 11 bankruptcy for his Texarkana Hotels LLC, which owned the combination Arkansas Convention Center and Holiday Inn on the Arkansas side.
Splash Hit
P2:3 Consulting of Canton, Texas, took over the management of Holiday Springs Water Park, just in time for the 2024 season.
“I can tell you that pumps were not working properly” when P2:3 received the keys to the property in March, said Jessica Kusak, director of client success for the company.
Motors on certain filters “were completely bypassed. So if it were to open the way that it was left when we got it, then it would be extremely unsafe and not follow any state or federal regulations for pool safety or kitchen safety.”
P2:3 Consulting rebranded the park as Big Dam Waterpark.
P2:3 wasn’t sure how long it would be managing the park. “We’re working for the bank who foreclosed on the property,” Kusak said.
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