WILTON — The Comfort Inn & Suites in Wilton and the Golden Corral restaurant next door have filed for Chapter 11 bankruptcy protection amid a legal battle between their owners and Adirondack Trust Co.
Niral Patel and his mother, Nirmala, who also own other Golden Corral locations in New York and New Jersey, were sued by Adirondack Trust in state Supreme Court in Saratoga County in October in a lawsuit that alleges they misused nearly $2 million in loans they obtained from the bank through the federal government's COVID-19 Paycheck Protection Program.
The Patels, who have denied wrongdoing, countersued the bank for $10 million, arguing that Adirondack Trust's move to freeze the loan proceeds back in September has severely hampered their ability to operate during the pandemic.
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The PPP is designed to give businesses hurt by the pandemic and government-mandated restrictions money to keep employees on their payrolls. The loans can be forgiven if certain criteria are met.
The Patels have kept the Comfort Inn open, although they have kept their Golden Corral franchises closed after buffet-style restaurants fell out of favor during the pandemic. The hotel and the buffet share a parking lot on Old Gick Road near the Wilton Walmart.
On Jan. 15, an attorney for the Patels informed the judge overseeing the Adirondack Trust case that the two entities that technically own the Wilton hotel and restaurant had initiated Chapter 11 bankruptcy protection cases in U.S. Bankruptcy Court in Albany. The bankruptcy automatically pauses the lawsuit and the countersuit for the time being.
The Patels are also facing a separate lawsuit in New Jersey from another creditor, BankUnited, which says it is owed $2.5 million.
