There will be no sale of the financially struggling Hilton Pittsburgh, Downtown, but there will be a restructuring.

"The Hilton will not be sold. The company will be restructured," said Jonathan Kamin, an attorney representing current owner Shubh Hotels Pittsburgh LLC and the restructured company.

Mr. Kamin said Tuesday that Florida-based Shubh, which bought the Hilton for $28 million in 2006, will be "maintaining some control" over the hotel, whose unfinished addition has become an eyesore at the entrance to Downtown.

It will be joined in the restructuring by Jorge M. Perez, founder of the The Related Group, a Miami-based real estate developer and builder, and principals of Fuel Group International, a Tampa, Fla., company with interests in hotels, entertainment and real estate that has worked with Shubh in the past.

Mr. Perez and Stephen M. Ross, founder and chief executive officer of Related Companies of New York City and majority owner of the Miami Dolphins, were involved in a partnership that sought to buy the Hilton last fall, but that deal never was completed.

It is not known whether Mr. Ross will be involved in the restructuring, and Mr. Kamin would not say.

Mr. Kamin said officials were still "working on defining the roles of each of the players." He said Mr. Perez of The Related Group will be providing "expertise and ... resources," most likely meaning capital, to the venture.

He said the Fuel Group itself will not have any interest in the restructured company but some of its principals will be involved, offering consulting services and resources.

Mr. Kamin said he is expecting a formal announcement regarding the restructuring within the next few days. He said a new management group also will operate the hotel. He would not divulge its name, describing it only as a "national management company and a major player in the hotel market."

Mr. Perez and Mr. Ross had been considering Interstate Hotels & Resorts for the Hilton management.

Shubh ran into trouble after launching a $25 million project to renovate rooms and to build an exterior addition that was to have included a swimming pool, health club and expanded banquet facilities.

Work on the expansion stopped last May after contractor P.J. Dick walked off the job because of an unpaid debt. Unions, other contractors and vendors also have filed claims against Shubh for the nonpayment of debts.

On Monday, U.S. Foodservice Inc., filed a lawsuit seeking $76,042 from Shubh. According to the lawsuit, the amount represents money the company is owed for food deliveries to the Hilton from spring 2008 through last fall.

The restructured ownership already appears to be working to resolve some of those lawsuits and mechanic's liens.

Stephen Berry, architect on the exterior addition, said he has settled a $340,000 claim against Shubh with the restructured group for an undisclosed amount, and expects work to resume on the expansion within a month.

"I'm glad the logjam is over and we're moving along to get the project finished," he said.

Mr. Berry said the restructured ownership plans to go ahead with the addition as originally designed. Shubh, because of financial problems, at one point scrapped plans for a pool, but that has since been added back into the work, Mr. Berry said.

In addition, he and Mr. Kamin said the restructured ownership group has settled a $1 million claim filed by P.J. Dick for unpaid demolition, excavation, concrete and structural steel work at the site. Mr. Kamin said more settlements are on the way.

"We anticipate having reached settlements with the creditors within the next two weeks," he said.

A P.J. Dick attorney could not be reached for comment.

Mr. Kamin said P.J. Dick also will remain as one of the contractors on the job. He expects work on the addition to be completed in a year.

"We're excited to bring the Hilton back to what it's always been in Pittsburgh," he said.

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