Judge brokers deal on Rivertowne Pub equipment

A federal bankruptcy judge in Pittsburgh on Friday brokered a deal between owners of the former bankrupt Rivertowne Pub & Grille in North Huntingdon and the man who bought the tavern’s inventory last month so the buyer can remove the tables, chairs, coolers and freezers from the site.

U.S. Judge Gregory Taddonio mediated discussions that will allow Sheldon Klasfeld of Monroeville, who bought the Rivertowne liquor license and inventory in a Jan. 24 auction for $107,500, to remove his property from the building along Route 30 between March 1 and 4. A dispute between Klasfeld and Shivs Real Estate LLC of Mt. Lebanon, which bought 50 percent interest in the property Jan. 28, had prevented Klasfeld from removing the items.

Taddonio became involved in the issue, despite repeatedly saying he was not certain the bankruptcy court has jurisdiction over parties not directly involved in the bankruptcy case.

“Let’s get this done so there is no more trouble,” Taddonio said. Without a resolution, the dispute could end up in a state court, the judge warned.

Joseph Boros Jr. of Monroeville, who owns 50 percent interest in the property, agreed to allow Klasfeld access to the building.

Christian Fyke, Boros’ business partner in Rivertowne Brewing, had sold his 50 percent interest in the property to Shivs Real Estate for $7,500 on Jan. 24. The Westmoreland County Recorder of Deeds has asked the state Department of Revenue to investigate that sale because Fyke and Boros paid $520,000 for the property in 2011.

Attorney Michael Roeschenthaler, representing Rivertowne Pub parent company Fybo Management Inc., said he sought the expedited hearing because the dispute delayed creditors receiving their share of the money Klasfeld paid. Fybo Management’s attorneys are holding Klasfeld’s payment in escrow, Roeschenthaler said, because Klasfeld could take court action if he does not get the equipment.

Shivs Real Estate, owned by Prasad Margabandhu, wanted Klasfeld to carry a $1 million liability policy against any damage that might be caused to the building by removing equipment and appliances, said Charles Fedel, an attorney representing Shivs. After prodding from the judge, Fedel agreed that a $500,000 liability policy would be sufficient.

Attorney Francis Corbett, representing Klasfeld, claimed Margabandhu’s interference in the sale of inventory was “an obstruction (that) flies in the face of your (judge’s) order.”

Taddonio chastised Fedel about Margabandhu’s behavior, despite Fedel’s contention that Margabandhu “has been entirely reasonable.”

“I’ve had similar situations with your client (Margabandhu) where I have questioned some of his actions,” the judge told Fedel.

Margabandhu did not appear in court Friday and could not be reached for comment.

Richard Kushner of Johnstown, a business partner of Margabandhu’s in the Rivertowne property, said he was concerned that freon in the coolers had to be removed by a professional and that an electrician was needed to disconnect the appliances from the power.

Kushner, who said he had bid for Margabandhu against Klasfeld in the bankruptcy auction before Taddonio, said he was concerned if the appliances were improperly disconnected, “it could burn the place down a month from now.”