Hits just keep on coming for Hilton
$49.6M foreclosure sought by backer
Saturday, September 04, 2010
By Mark Belko, Pittsburgh Post-Gazette
The other shoe has dropped for the owner of the former Hilton Pittsburgh.
BlackRock Financial Management Inc. has begun a foreclosure action against Shubh Hotels Pittsburgh LLC, one day after the prominent Downtown hotel lost the Hilton name.
The New York-based lender filed the complaint Friday in Allegheny County Common Pleas Court against Shubh and CEO Atul Bisaria.
As part of the action, BlackRock is asking the court to order the sale of the hotel. It also is seeking a judgment for $49.6 million, plus interest, the amount of the mortgage to Shubh.
BlackRock moved to foreclose on Shubh a day after Hilton Hotels & Resorts terminated its franchise license agreement with the hotel owner. It tied the decision to "violations of the terms" of the franchise agreement, although a spokesman would not discuss specifics.
As a result, the hotel, Pittsburgh's largest with more than 700 rooms, was stripped of the prestigious Hilton name and no longer is part of its reservations system. Hilton also has removed the hotel from its website.
Read more: http://www.post-gazette.com/pg/10247/1085012-53.stm