Owners of Pittsburgh hotel file for bankruptcy
In an effort to stave off foreclosure, the owners of one of the biggest hotels in Pittsburgh have filed for Chapter 11 bankruptcy protection.
The Hilton Pittsburgh sought protection for liabilities owed to between 100 and 199 creditors.
According to a report in the Pittsburgh Post-Gazette, the move came just three days after one of its lenders, BlackRock Financial Management, filed a court complaint to foreclose against the hotel's controlling company, Shubh Hotels Pittsburgh. BlackRock said it wanted the hotel to be sold and a judgment of $49.6 million, the amount of the hotel's mortgage, brought against Shubh.
The report said that Hilton Hotels and Resorts has already terminated its franchise license agreement with the Pittsburgh site, thereby stripping it of its name. The bankruptcy filing not only stops its foreclosure, but is also a move to appoint a third party to oversee operations.
A report from Pittsburgh television station KDKA said that the hotel has between $10 million and $50 million in assets against between $50 million and $100 million in debts. Last week, the Shubh group transferred ownership to a new one called Dr. Kiran Patel and Black Diamond Hospitality LLC.
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