Statler Towers owner fined $250 a day until check is returned
His company must pay same amount
Bashar Issa, the British owner of the financially troubled Statler Towers, and his company were each fined $250 per day by a judge Monday until they turn over an $81,000 state check belonging to the building.
The money — an enterprise zone reimbursement check the state made out to Issa personally — is needed to pay expenses to keep the building open. Meanwhile, a major tenant held off on a threat to file an involuntary Chapter 11 bankruptcy proceeding.
State Supreme Court Justice John M. Curran also said he may begin fining Issa another $250 a day for contempt later this week. That fine would be imposed if Issa’s attorneys by Wednesday do not explain the mysterious 99-year-lease Issa claims to have signed recently with a British company to essentially foot the bill for the growing liabilities of the 18-story landmark building, the judge said.
The judge also granted Park Lane Catering, the building’s major tenant, a summary judgment against Issa for breach of its lease agreement, setting the stage for a financial damages trial against the developer.
The fines and judgment came as some Statler tenants—including the state Workers’ Compensation Board and a program providing legal aid for the poor — warned of dire consequences if utilities in the building are turned off for nonpayment, saying it would take months for them to relocate.
After more than an hour of private talks with attorneys in the ongoing court action over the 86-year-old landmark, Curran said he has yet to achieve a deal to find a new owner of the building, which still has about two dozen tenants.
Curran persuaded Buffalo businessman Stephen Leous, appointed as receiver, to turn over to National Fuel a $10,000 check today to keep utilities on in the building through next Tuesday.
Asked what happens after next Tuesday, a National Fuel spokeswoman later said the company will remain “watchful and vigilant” and is hopeful a settlement can be reached within the week. National Fuel attorneys told the judge Monday that Issa is behind at least $210,000 on utility bills.
In line with Curran’s efforts to keep the Statler open, Park Lane Catering did not pursue its threat to file an involuntary Chapter 11 bankruptcy proceeding against the building Monday, a proceeding that could ensure a court-supervised orderly transfer of ownership. But Park Lane bankruptcy attorney Gary M. Graber stressed that “the papers are ready.”
In court last week, David R. Pfalzgraf Jr., another Park Lane attorney, told Curran the catering company has already booked about 200 events at the Statler and is currently owed “well in excess of $1 million” by Issa’s company because of lease violations.
Curran pleaded from the bench Monday for remaining tenants to keep paying rent to the court-appointed receiver and noted that the state tax department has seized the latest $27,000 monthly rental check paid by the Workers’ Compensation Board.
The judge said he is trying to get the money — which Issa owes for unpaid sales taxes on a $250,000 luxury boat — released so it can be used to help pay building expenses, including utilities.
Ryan White, Issa’s attorney, told the judge he has not heard from Issa, who is in England with visa problems that prevent him from coming to this country. But he stressed that he is prepared to begin court action to overturn the summary judgment Park Lane Catering was granted Monday.
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