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

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While negotiations are under way with two utilities that providee essential service tothe 18-story Niagara Square at least one tenant has asked the courr for permission to break its lease because of the building’ uncertain fate. That request was made by Erie County Bar Associatioh Aid to Indigent PrisonerswSociety Inc., which leases nearly 5,00o0 square feet on the Statler’s sixth The society, which handles nearly 200 casesw per day, has asked U.S. Bankruptchy Court Chief Justice Carl Bucki of the Westerj Division to allow its lease to be brokeb without penalty because of the uncertainty facinggthe Statler.
The society’s lease runs through Februarty2011 and, if it had to pay $80,0090 in penalties to break the it would financially cripple the Bucki reserved decision. “We are not like a privater law firm,” said Buffalo attorney Robert Feldman, who is representing the Bar Association affiliate. “We cannot afford to buy our way out of the We can’t afford to sign a new leasse somewhere when we would owe Mr. Horwitz (courrt appointed trustee Morris Horwitz) $80,000.
” The society’sd request was one of several issues Buckj heard presented during the bankruptcy Bucki placedthe Statler’s LLC, into involuntary Chapter 11 proceedings last month as billz continued to mount for the building, whichu is losing $80,000 a month. The bankruptcu filing is one of several issues serviny as a backdrop for the complex series of legal actions against BSC Development and its British investorBashar Issa. The Bar Associationb society is concerned that if utilitiea are cut off tothe building, it would be placecd in serious danger, Feldman argued.
BSC Development Buffalo owes, among others, more than 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 atthe building. Under an agreement, National Fuel will make weeklyy readings of gas service and submitg the billto Horwitz, who will pay the bill from rent The Statler takes in about $100,00o a month in rents from its few remaininvg tenants. “For the time being, they are happy with said Buffalo attorneyJulia Kreher, who is workint with Horwitz. A similar agreement with for electricf service is alsobeing negotiated, Krehe added.
Horwitz said he is convincerd all of the utilities will remain on and no tenantas will have to move becauseof cut-off The goal is to find a buyer for the either through traditional sources or a court-mandated auction, by the “This type of case has to be handled quicklhy or it runs the risk of nevefr being handled at all,” Bucki