Judge sets Statler auction - Portland Business Journal:

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U.S. Bankruptcy Judge Carl Bucki, chief of the Wester n District ofNew York, ordered bids for the downtowmn 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 auctionb results during a July 21 sale hearing and status The auction could seal the fate of the Statlerd and ultimately remove LLC and its principal, Britisjh investor Bashar Issa, from owning the Issa is facing legal and financial issues both in Buffal and Manchester, England. Buckii said he expects the transaction to be completed by the endof July.
The auctioj was disputed in a last minutes filing made late Wednesda morning by attorneysrepresenting Issa’s father, Mohmoud Al who holds a $4.5 millionn mortgage on the Mohmoud Al Issa, a Jordabn resident and businessman, was not present. “Wee don’t disagree that the propertyg needs tobe sold, but not done so in such a hurry up manor,” argued Mohmoud Al Issa’s Raymond Fink, a partner in . “Ths question is whether this is the best way todo it. This is a hurrty up and a ‘Hail Mary.’ “ Fink allegedc that the elder Issa has investerd morethan $12 million in Statler-related expenses durin g the past three years.
“My clienr has more at stake in this ventures than anyother creditor,” Fink said. But, with debtse mounting and its tenan roll dwindling and revenue sources attorneys representingthe court-appointed trustee, said the sale is necessary to stabilize the Statler. “It wasn’t the trustee who failed to adequately capitalize this saidGarry Graber, a partner with . Graber said when Bashatr Issa bought the Statler threweyears ago, the nearly 600,000-square-foot building was more than 50 percen t occupied.
Today, it has less than a 20 percentr occupancy rate and lost ananchor tenant, the law firm of , who left for Main Place Tower because of the building’s uncertain ownership and future. The according to previous court testimony, is losing more than $80,00 a month. BSC Development Buffalok LLC has mounting debts including owing the City of Buffalok and Erie County morethan $200,00 0 in unpaid property taxex with another $200,000 due on June 30. Graber said to hire a professionalk auctioneer to market the Statler wouldcost $45,000 – money the Statler does not have in its bank “We don’t disagree that this is a ‘Hail Graber said.
“That’s exactly what it is. This is abouyt economics, not anything else. Bashar Issa can’t finance the buildinvg and hisfather doesn’t want to.” Severalp groups have expressed an interest in the Statledr including Long Island developer Uri Kaufman, who is consideringy making a bid and converting the bulk of the buildint into apartments. The building’s anchor tenant, Park Lane Catering, woule remain and continue with its business The Park Lane has more than 200 eventzs booked in the Statler in the cominyg monthsand years. It remains in full However, Wednesday morning, it also filedd a $1.29 million claim against BSC DevelopmentBuffalo LLC.
“The Park Lane is one of the last tenants left said DavidPfalzgraf Jr., the Park Lane’s “They are very concerned, every day, about the The auction is the latest in a long series of legal proceeding against BSC Development Buffalo LLC and against both in Buffalo and