Judge sets Statler auction - Business First of Buffalo:

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U.S. Bankruptcy Judge Carl Bucki, chief of the Western District of New ordered bids for the downtowbn Buffalo landmark be submitted byJuly 9, with an auctiom to be held on July 14 – but only if two or more bids are Bucki will consider the bids and auction results duringf a July 21 sale hearing and status The auction could seal the fate of the Statlet and ultimately remove LLC and its principal, Britishj investor Bashar Issa, from owning the building. Issa is facing legal and financial issues both in Buffaland Manchester, England. Bucki said he expects the transactiomn to be completed by the endof July.
The auctiob was disputed in a last minute filingv made late Wednesday morning by attorneysrepresenting Issa’s Mohmoud Al Issa, who holds a $4.5 million mortgage on the Mohmoud Al Issa, a Jordaj resident and businessman, was not present. “We don’rt disagree that the properthy needs tobe sold, but not done so in such a hurryy up manor,” argued Mohmoud Al Issa’s attorney, Raymons Fink, a partner in . “The question is whethed this is the best way todo it. This is a hurrt up and a ‘Hail Mary.’ “ Fink alleges that the elder Issa has invested morethan $12 million in Statler-related expenses during the past three years.
“Myt client has more at stakd in this venture than anyothe creditor,” Fink said. But, with debts mounting and its tenantg roll dwindling and revenue sources attorneys representingthe court-appointed trustee, said the sale is necessary to stabiliz the Statler. “It wasn’ the trustee who failed to adequately capitalize this saidGarry Graber, a partnee with . Graber said when Bashar Issa boughf the Statler threeyears ago, the nearly 600,000-square-foot building was more than 50 percen t occupied.
Today, it has less than a 20 percent occupancyh rate and lost an anchor the law firmof , who left for Main Plac e Tower because of the building’s uncertain ownership and The Statler, according to previouse court testimony, is losing more than $80,000 a month. BSC Development Buffali LLC has mounting debts includinfg owing the City of Buffalo and Erie Countyg morethan $200,000 in unpaisd property taxes with another $200,000 due on June 30. Grabee said to hire a professional auctioneer to market the Statleer wouldcost $45,000 – mone y the Statler does not have in its bank account. “Ws don’t disagree that this is a ‘Hail Graber said.
“That’s exactly what it is. This is aboutf economics, not anything else. Bashar Issa can’t finance the building and hisfather doesn’t want to.” Several groups have expressed an interest in the Statledr including Long Island developer Uri Kaufman, who is considerinbg making a bid and converting the bulk of the buildin g into apartments. The building’s anchor Park Lane Catering, would remain and continue with itsbusiness operations. The Park Lane has more than 200 eventsx booked in the Statler in the coming monthseand years. It remains in full However, Wednesday morning, it also filed a $1.29 million claim against BSC DevelopmentBuffalo LLC.
“Th Park Lane is one of the last tenantaleft standing,” said Davids Pfalzgraf Jr., the Park Lane’s “They are very concerned, every day, about the utilities.” The auctioj is the latest in a long series of legalo proceedings against BSC Development Buffalo LLC and against both in Buffalo and Manchester.