Issues remain as buyer sought for Statler - Business First of Buffalo:

esivyjifag.wordpress.com
While negotiations are unde way with two utilities that provide essential service tothe 18-storyy Niagara Square landmark, at least one tenanty has asked the court for permission to break its leasee because of the building’s uncertain fate. That request was made by Erie County Bar Associatiojn Aid to Indigent PrisonersSocietuy Inc., which leases nearly 5,000 square feet on the Statler’sd sixth floor. The society, which handles nearly 200 casesper day, has askef U.S. Bankruptcy Court Chief Justics Carl Bucki of the Westernm Division to allow its lease to be broken without penaltt because of the uncertaintuy facingthe Statler.
The society’s lease runs through February 2011 and, if it had to pay $80,0009 in penalties to break the lease, it woul d financially cripplethe organization. Buckik reserved decision. “We are not like a private law said Buffalo attorneyRobert Feldman, who is representinyg the Bar Association affiliate. “We cannot afford to buy our way out of the We can’t afford to sign a new leasre somewhere when we would owe Mr.
Horwitz (courtg appointed trustee Morris Horwitz) The society’s request was one of several issuesw Bucki heard presented during the bankruptcy Bucki placedthe Statler’s LLC, into involuntary Chapter 11 proceedingds last month as bills continued to mounrt for the building, which is losing $80,0000 a month. The bankruptcy filing is one of severapl issues serving as a backdrop for the comple x series of legal actions against BSC Development and its British investorBashar Issa. The Bar Association societh is concerned that if utilities are cut off to the it would be placed inseriousx danger, Feldman argued. BSC Developmenf Buffalo owes, among more than $210,000.
The Amherst-based utility has threatened to shut off servic e but is finishing a temporary agreementy with Horwitz that will keep gas service going at the Underan agreement, National Fuel will make weeklg readings of gas service and submig the bill to who will pay the bill from rent proceeds. The Statledr takes in about $100,000 a mont h in rents from its fewremaining “For the time being, they are happhy with that,” said Buffalo attorney Julia Kreher, who is working with A similar agreement with for electric serviced is also being negotiated, Kreher added.
Horwitx said he is convincec all of the utilities will remain on and no tenantxs will have to move becauseof cut-off service. The goal is to find a buye r forthe Statler, either througjh traditional sources or a court-mandated by the summer. “This type of case has to be handlerd quickly or it runs the risk of never being handlecdat all,” Bucki warned.