Bankruptcy trustee in place at Statler - Business First of Buffalo:

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Horwitz’s appointment, which had been anticipated, came despite a last-ditch effort by the Statler’as owner, BSC Development Buff LLC and itsmanaginv member, British investor Bashar Issa, to delay the involuntary Chapter 11 proceedings in U.S. Bankruptcy The relatively rare involuntary Chaptert 11 proceedings were brought against BSC Development Buff LLC by four Statler including ParkLane Catering. The legal actiob is being sought to remove Issa and BSC Developmen t asthe Statler’s owner and to find a new owne for the 18-story, 80-year-old building that overlooks Niagars Square.
“Our intention is to keep the building open and to continuee to provide servicesfor tenants,” Horwitz said. At the Horwitz said he will review all options concerningvthe Statler’s future including finding a new buyer, either througgh negotiations or a court-sanctioned “We must find the most appropriate way to he said. “Part of that is to find a willingy andable buyer.” U.S. Bankruptcy Judge Carl Bucki, Western Districrt of New York chief bankruptcy appointed Horwitz. Bucki heard motions on the case last week and determiner that a trustee had to be in placeby “There is a need for prompt Bucki said.
“A trustee is the best opportunitgy forprompt action. There is a risk to harm to innocent tenants. There is a risk of harm to innoceny sub-tenants. The merits of the issuee need prompt consideration.” The Statler, which has seen its tenantg roll drop inrecent years, is losing $80,009 while earning, at $100,000 in monthly revenues. Many of the tenants were withholdinh rent payments over frustration with little progress made in termes of renovating the building or keepinbg basic servicesin operation.
Issa, who bought the Statlerd in 2006, had promised a $100 milliom top-to-bottom makeover of the building including bringinga 150-rookm hotel to the complex as well as renovatinbg office space and converting its upper floors into upscale Only a small scale of the renovations were completesd and virtually no work has been done in the Statler, in term of repairs, for more than one Issa is also facing legapl and financial issues in England. In two motions expressed to Buckii just a few minutes beforeThursday morning’s proceedings were to Issa asked the involuntaryh bankruptcy action be set aside.
Issa disputed several factes in previous court sessionx including allegations that Park Lane Catering was actingt inbad faith. Bucki dismissed Issa’s claims and allegations. “The legitimacy of the papere is opento question,” Bucki said. “The papers that were submitted (by do not comply with the rules ofthe court.” Buckui heard testimony that the four tenants who broughy the involuntary bankruptcy action to court are owed approximately Park Lane Catering, earlier this montn filed a mechanic’s lien against BSC Development claiminbg it is owed $16,700 for emergencyt repairs it had to make near the Statler’as Franklin and Genesee streets entrance.
Park Lane Catering, last fall, begabn a lawsuit in State Supreme Courtt against BSC Development becausew it has lost morethan $1 milliohn in bookings due to the raw state of the buildint and portions of its lobby. Park Lane Cateringb runs special events, ranging from weddings to corporate in several areas ofthe Statler. Park Lane Catering has more than 200 futurse events booked atthe Statler. All of the eventds will go on as scheduled. William Park Lane Catering owner, is working with Chicago-basedr interests who want to buy the Statler and have pledges to make atleasg $70 million in renovations to the building. Issa has rebufferd Koessler’s offers.
The involuntary bankruptcy proceedings began earlier this montn as the Statler was faced with the prospec t of shutting off service tothe building. Nationalo Fuel is owed more than $210,000 in unpaid bille from . The bills pre-date the bankruptcuy filing. Other utilities are also owed moniew well intothe six-figure including and the City of Buffalo’sx Water Department.