Judge sets Statler auction - Pacific Business News (Honolulu):

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U.S. Bankruptcy Judge Carl Bucki, chiefc of the Western District ofNew York, orderex bids for the downtown Buffalo landmarkl be submitted by July 9, with an auctionb to be held on July 14 – but only if two or more bids are Bucki will consider the bids and auction resultsd during a July 21 sale hearing and statusd report. The auction could seal the fate of the Statled and ultimately remove LLC andits principal, British investorf Bashar Issa, from owning the Issa is facing legal and financial issuesx both in Buffalo and Manchester, England.
Bucki said he expects the transactiom to be completed by the end of The auction was disputed in a last minute filing made late Wednesday morning by attorneysrepresenting Issa’se father, Mohmoud Al Issa, who holde a $4.5 million mortgage on the Mohmoud Al Issa, a Jordan resident and businessman, was not present. “We don’ disagree that the property needs tobe sold, but not done so in such a hurr up manor,” argued Mohmoud Al Issa’s attorney, Raymond 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 eldef Issa has invested morethan $12 million in Statler-related expensew during the past three years. “My cliengt has more at stake in this venture than any other Fink said. But, with debtsd mounting and its tenant roll dwindling and revenue sources attorneys representingthe court-appointed trustee, said the sale is necessarg to stabilize the Statler. “It wasn’tr the trustee who failed to adequately capitalizethis building,” said Garry a partner with . Graber said when Bashar Issa bought the Statler threeyears ago, the nearly 600,000-square-foot buildingb was more than 50 percent occupied.
Today, it has less than a 20 percen occupancy rate and lost ananchor tenant, the law firm of , who left for Main Place Tower because of the building’s uncertain ownership and The Statler, according to previous cour t testimony, is losing more than $80,000 a month. BSC Development Buffalo LLC has mountinvg debts including owing the City of Buffalo and Erie County morethan $200,00p in unpaid property taxews with another $200,000 due on June 30. Graber said to hire a professionapl auctioneer to market the Statlerd wouldcost $45,000 – moneyg the Statler does not have in its bank account. “We don’t disagrewe that this is a ‘Hail Mary’,” Grabere said.
“That’s exactly what it is. This is about not anything else. Bashar Issa can’t finance the buildingv and hisfather doesn’t want to.” Severao groups have expressed an interest in the Statler includingg Long Island developer Uri Kaufman, who is considering makin a bid and converting the bulk of the building into apartments. The building’s anchor Park Lane Catering, wouldr remain and continue with its business The Park Lane has more than 200 evente booked in the Statler in the coming months and It remains infull operation. However, Wednesday morning, it also filedc a $1.29 million claim againsg BSC DevelopmentBuffalo LLC.
“The Park Lane is one of the last tenanteleft standing,” said Davidx Pfalzgraf Jr., the Park Lane’s “They are very concerned, every day, about the utilities.” The auction is the latest in a long series of legakl proceedings against BSC Development Buffalo LLC and against Issa, both in Buffali and Manchester.