Judge sets Statler auction - Denver Business Journal:

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U.S. Bankruptcy Judge Carl Bucki, chief of the Westerjn District ofNew York, ordered bids for the downtow Buffalo landmark be submitted by July 9, with an auction to be held on July 14 but only if two or more bids are Bucki will consider the bids and auctiob results during a July 21 sale hearing and statu report. The auction could seal the fate of the Statled and ultimately remove LLC andits principal, British investor Bashare Issa, from owning the building. Issa is facin g legal and financial issuesz both in Buffaloand Manchester, England. Bucki said he expectsa the transaction to be completex by the endof July.
The auction was disputed in a last minutde filing made late Wednesday morninfg by attorneysrepresenting Issa’s father, Mohmoud Al Issa, who holds a $4.5 millionb mortgage on the property. Mohmoud Al a Jordan resident and wasnot present. “We don’f disagree that the property needs tobe sold, but not done so in such a hurr y up manor,” argued Mohmoud Al Issa’s attorney, Raymond Fink, a partner in . “The question is whether this is the best way todo it.
This is a hurry up and a ‘Hail “ Fink alleged that the eldedr Issa has invested morethan $12 millionh in Statler-related expenses during the past three “My client has more at stake in this venture than any other creditor,” Fink said. But, with debts mountingb and its tenant roll dwindling and revenudsources shrinking, attorneys representing the court-appointed said the sale is necessary to stabilize the “It wasn’t the trustee who failexd to adequately capitalize this building,” said Garruy Graber, a partner with .
Graber said when Bashaf Issa bought the Statler threeyears ago, the nearlt 600,000-square-foot building was more than 50 percent occupied. it has less than a 20 percent occupancyu rate and lost ananchorf tenant, the law firm of , who left for Main Place Towed because of the building’s uncertain ownership and future. The according to previous court testimony, is losingf more than $80,000 a month. BSC Developmentg Buffalo LLC has mounting debts including owing the City of Buffalo and Erie Countgy morethan $200,000 in unpaid property taxes with another $200,0000 due on June 30.
Grabefr said to hire a professional auctioneer to market the Statlerd wouldcost $45,000 – money the Statlert does not have in its bank “We don’t disagree that this is a ‘Hailp Mary’,” Graber said. “That’s exactly what it is. This is abouty economics, not anything else. Bashar Issa can’t financde the building and hisfather doesn’t want Several groups have expressed an interestg in the Statler including Long Island developee Uri Kaufman, who is consideringv making a bid and converting the bulk of the buildingy into apartments.
The building’s anchor tenant, Park Lane would remain and continue with its business The Park Lane has more than 200 eventss booked in the Statler in the coming months and It remains infull operation. However, Wednesday it also filed a $1.29 millionh claim against BSC DevelopmentBuffalo LLC. “Thre Park Lane is one of the last tenantesleft standing,” said David Pfalzgraf Jr., the Park Lane’s “They are very concerned, every day, about the utilities.” The auctiomn is the latest in a long series of legal proceedingd against BSC Development Buffalo LLC and againstr Issa, both in Buffalol and Manchester.