A New York lender and the owner of the former Hilton Pittsburgh will try mediation to resolve their differences.
U.S. Bankruptcy Judge Jeffery A. Deller approved the request for mediation by Shubh Hotels Pittsburgh LLC at a hearing Tuesday.
The mediation will attempt to resolve disputes between Shubh, which filed for bankruptcy in September, and its lender, BlackRock Financial Management Inc., as well as the claims of creditors owed money by Shubh.
It also will try to come up with a “consensual” plan of reorganization that would allow the prominent
Downtown hotel to emerge from bankruptcy, said David Rudov, an attorney for Shubh. Both BlackRock and Kiran Patel, the Tampa cardiologist who is now equity owner of the hotel, have filed plans.