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Receiver remains for hotel

A receiver will retain control of the Grand Island Holiday Inn while the hotel’s owner and the mortgage holder try to resolve a dispute.

American Hospitality Group LLC, which bought the hotel in 2004, and the Royal Bank of Canada are at odds over whether K. Michael Sawicki, who was appointed receiver in State Supreme Court, should continue to oversee the hotel.

The Whitehaven Road hotel was placed in receivership in March, and American Hospitality filed for Chapter 11 bankruptcy this month. American Hospitality wants the receiver removed and to regain control of the property while it reorganizes. But the Royal Bank of Canada has objected.

Judge Carl L. Bucki held a hearing Tuesday, but the two sides agreed to put off the receiver issue until a June 9 hearing as they try to work out a resolution.

Sawicki will remain receiver until at least the next hearing. The 263- room Grand Island hotel continues its normal operations.