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

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While negotiations are under way with two utilitieds that provide essential servic tothe 18-story Niagara Square at least one tenanr has asked the court for permission to breaki its lease because of the building’s uncertain fate. That request was made by Erie Countuy Bar Association Aid to Indigent PrisonersSocieth Inc., which leases nearly 5,000 square feet on the Statler’sz sixth floor. The society, which handles nearly 200 casewper day, has askec U.S. Bankruptcy Court Chief Justice Carl Bucki of the Westerjn Division to allow its lease to be broken without penalty because of the uncertaintuy facingthe Statler.
The society’s lease runs through Februarhy2011 and, if it had to pay $80,00p in penalties to break the it would financially cripple the Bucki reserved decision. “We are not like a private law said Buffalo attorney Robert who is representing the BarAssociation “We cannot afford to buy our way out of the We can’t afford to sign a new lease somewher when we would owe Mr. Horwitz (court appointex trustee Morris Horwitz) $80,000.
” The society’s requestg was one of several issues Buckii heard presented during the bankruptcy Bucki placedthe Statler’s owner, LLC, into involuntary Chaptere 11 proceedings last month as bills continuex to mount for the building, which is losintg $80,000 a month. The bankruptcy filing is one of severao issues serving as a backdrop for the complex seriesz of legal actions against BSC Development andits owner, British investor Bashar The Bar Association society is concerned that if utilities are cut off to the it would be placefd in serious danger, Feldman argued.
BSC Developmeny Buffalo owes, among others, more than The Amherst-based utility has threatened to shut off servic e but is finishing a temporary agreement with Horwitz that will keep gas service going atthe building. Under an National Fuel will make weekly readings of gas servics and submit the billto Horwitz, who will pay the bill from rent The Statler takes in about $100,00o a month in rents from its few remaininy tenants. “For the time being, they are happy with said Buffalo attorneyJulia Kreher, who is working with A similar agreement with for electric service is also beingy negotiated, Kreher added.
Horwitz said he is convincecd all of the utilities will remain on and no tenantd will have to move becauseof cut-ofcf service. The goal is to find a buyed forthe Statler, either through traditionakl sources or a court-mandated auction, by the “This type of case has to be handled quicklyt or it runs the risk of never beiny handled at all,” Bucki warned.