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Creditors seek sale of Hilton Pittsburgh's assets
Friday, July 10, 2009

The Hilton Pittsburgh's assets -- couches, television sets, its liquor license and other property -- are scheduled to be up for sheriff's sale later this month to satisfy debts to a Shaler plumbing company and another hotel.

Its bank accounts also have been frozen.

Shubh Hotels Pittsburgh LLC owes Salego Plumbing Co. $13,105.92 and Gokul Inc., which runs the Days Inn on Banksville Road, $12,012.58.

Both companies sued Shubh and were issued default payments when Shubh did not respond to the suits, Allegheny County Sheriff's Sgt. Richard F. Fersch said today.

The sheriff's sale, scheduled for July 27 at 11 a.m. at the Hilton, Downtown, can be forestalled if Shubh pays its debts, Sgt. Fersch said.

The sale is not a foreclosure and would not affect the hotel building itself or its land.

"It's a personal property execution. They're not going after the subject real estate. They're going after the contents within," Sgt. Fersch said. Shubh, which is in the midst of a $25 million renovation of the Hilton, recently settled a $317,273 debt owed to contractor P.J. Dick.

Salego claimed that Shubh owed it for materials and labor.

Gokul said Shubh reserved rooms for 14 days to house its workers, but Shubh removed the workers from Days Inn without telling Gokul resulting in lost revenue, Sgt. Fersch said.

The sheriff's office received notification Tuesday of the request for a sale of the Hilton's assets. It sent a deputy sheriff to the hotel yesterday to take an inventory.

In addition, the sheriff's office effectively froze the Hilton's accounts at PNC Bank when it delivered a notice to the bank to garnish the hotel's accounts for Salego, Sgt. Fersch said.

More details in tomorrow's Pittsburgh Post-Gazette.

Jonathan D. Silver can be reachd at jsilver@post-gazette.com or 412-263-1962.
First published on July 10, 2009 at 11:20 am