Bankruptcy or not, a New York lender still wants to foreclose against the owner of the former Hilton Pittsburgh.

BlackRock Financial Management Inc., in an emergency motion filed Wednesday in U.S. Bankruptcy Court in Pittsburgh, asked a judge for the right to move ahead with the foreclosure against Shubh Hotels Pittsburgh LLC.

A hearing will be held on the request Sept. 14.

Shubh countered Wednesday with its own motions for authorization to pay workers and to use hotel revenues being held by BlackRock for that purpose and to run the former Hilton.

When Shubh filed for Chapter 11 bankruptcy protection Tuesday, it triggered an automatic stay of the foreclosure proceedings BlackRock started Friday in Allegheny County Common Pleas Court.

The lender filed for foreclosure after Hilton Hotels & Resorts terminated its franchise license agreement with Shubh last week. The move barred Shubh from using the Hilton name and removed the hotel from the Hilton reservations system.

BlackRock said the loss of the Hilton franchise triggered a default under Shubh's $49.6 million mortgage agreement.

In its emergency motion Wednesday, BlackRock argued that Shubh has no equity in the hotel and "is without the financial resources to provide the lender with adequate protection or to have a prospect of reorganization."

It claimed that, to the best of its information, Shubh had no cash with which to operate the hotel. BlackRock said it had revoked Shubh's license to the rents, or hotel revenues, when it declared a default of the mortgage.

It also pointed out that Shubh, in separate litigation filed in Common Pleas Court in July, stated that it owed $49.6 million on a hotel worth $30 million.

"Value of the property will decline rapidly without effective management, acceptable to the lender and to Hilton, and significant cash with which to operate the hotel. [Shubh] has not offered the lender adequate protection of its interest," BlackRock stated.

In the foreclosure, BlackRock is seeking the sale of the hotel in an effort to recoup as much of the $49.6 million owed by Shubh as possible. It also wants a judgment against Shubh for the full amount of the loan.

In response, Shubh attorney Jonathan Kamin said the BlackRock emergency request was "not unexpected and we will respond to them accordingly."

"We're in a situation where everyone is trying to protect their interests," he said.

Contrary to BlackRock claims that Shubh has no prospect of reorganization, Mr. Kamin said the company is in discussions with the lender and others about just that.

"We believe we have a reorganization plan that will satisfy the lender, the creditors, and will also adequately protect the employees and guests," he said.

Doug Campbell, a local bankruptcy attorney, said BlackRock's emergency motion amounted to "standard posturing" in these type of cases.

"You do this while you negotiate. It's a way to keep pressure on the borrower," he said. "It's really just using leverage because while you're seeking [foreclosure], you may still be negotiating the terms of perhaps a sale."

Mr. Kamin said Shubh would have the cash to operate the hotel if BlackRock would release the revenues it has been withholding, estimated at more than $400,000.

In its motion seeking use of the funds, Shubh said it has more than 500 rooms a night booked for Friday, Saturday and Sunday because of the Steelers and Pitt football games.

"It is critical that these guests are treated hospitably and that the hotel is adequately provisioned with food, beverages and other amenities for these guests," Shubh stated.

Mr. Kamin said he is hopeful Shubh and BlackRock will be able to reach an agreement on the use of the funds before a hearing scheduled Friday in bankruptcy court.

If not, Shubh said in its petition that Dr. Kiran C. Patel, a Tampa, Fla., cardiologist and philanthropist, has offered to provide a $1 million loan to keep the hotel running, provided that he gets repaid first above all other claimants, including BlackRock.

"We believe we will be successful in having the money released," Mr. Kamin said. "If not, we have other options available to us if need be."

Shubh announced last week after Hilton terminated its agreement that it had transferred control of the hotel to Dr. Patel. Under the arrangement, Dr. Patel would own 89 percent of the property and Shubh 11 percent.

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