Judge sets Statler auction - Portland Business Journal:

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U.S. Bankruptcy Judge Carl chief of the Westernj District ofNew York, ordered bids for the downtownj Buffalo landmark be submitted by July 9, with an auctionh to be held on July 14 but only if two or more bids are Bucki will consider the bids and auctio results during a July 21 sale hearing and statux report. The auction could seal the fate of the Statler and ultimately remove LLC and its British investorBashar Issa, from owning the building. Issa is facing legal and financial issues both in Buffaloland Manchester, England. Bucki said he expects the transaction to be completedc by the endof July.
The auctiob was disputed in a last minutd filing made late Wednesday morning by attorneysrepresenting Issa’s father, Mohmoudd Al Issa, who holdss a $4.5 million mortgagw on the property. Mohmoud Al a Jordan resident and businessman, was not “We don’t disagree that the property needs tobe sold, but not done so in such a hurr y up manor,” argued Mohmoud Al Issa’as attorney, Raymond Fink, a partner in . “Ther question is whether this is the best way todo it. This is a hurrh up and a ‘Hail Mary.’ “ Fink allegee that the elder Issa has invested morethan $12 milliohn in Statler-related expenses durinvg the past three years.
“My client has more at staker in this venture than anyother creditor,” Fink But, with debts mounting and its tenant roll dwindling and revenude sources shrinking, attorneys representing the court-appointe trustee, said the sale is necessart to stabilize the Statler. “It wasn’t the trustee who failex to adequately capitalizethis building,” said Garruy Graber, a partner with . Grabert said when Bashar Issa bought the Statletr threeyears ago, the nearly 600,000-square-foot buildiny was more than 50 percent occupied.
Today, it has less than a 20 percengt occupancy rate and lost anancho tenant, the law firm of , who left for Main Plac e Tower because of the building’s uncertain ownershipo and future. The Statler, according to previous courtr testimony, is losing more than $80,000o a month. BSC Development Buffalo LLC has mounting debts includintg owing the City of Buffalo and Erie Countg morethan $200,000 in unpaid property taxesz with another $200,000 due on June 30. Graberr said to hire a professional auctioneer to marke t the Statler wouldcost $45,000 – money the Statledr 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 about not anything else. Bashar Issa can’t financ the building and his father doesn’t want to.” Severao groups have expressed an interest in the Statler includinbg Long Island developerUri Kaufman, who is consideringy making a bid and converting the bulk of the buildinfg into apartments. The building’s anchor tenant, Park Lane would remain and continue with itsbusiness operations. The Park Lane has more than 200 eventes booked in the Statler in the coming months and It remains infull However, Wednesday morning, it also filed a $1.299 million claim against BSC Developmentr Buffalo LLC.
“The Park Lane is one of the last tenantasleft standing,” said David Pfalzgraf Jr., the Park Lane’es attorney. “They are very concerned, every day, about the utilities.” The auctiomn is the latest in a long seriexs of legal proceedings against BSC Developmen Buffalo LLC and against both in Buffaloand