Financial trouble for Statler Towers

BUFFALO, N.Y. (WIVB) - The depressed economy has certainly not helped the fortunes of the famed Statler Towers.

The Buffalo landmark has fallen into serious disrepair and is now headed for bankruptcy.
But, all that red ink could have a silver lining.

State Supreme Court Justice John Curran said, "This morning, I held him personally in contempt for not complying with my order."

Justice Curran is now using the term 'absentee owner' to describe Bashar Issa, the Iraqi-born businessman who bought the Statler three years ago with big plans to renovate it.

Issa said, "And I truly believe that this city has potential beyond belief." (2007)

Justice Curran said, "And they were marvelous plans by all accounts, but that obviously has hit a brick wall."

Issa hasn't even been in Buffalo for a year, and the old landmark is falling into disrepair.

It's been operating under a court appointed receiver. Two more tenants left last month.

National Fuel hasn't been paid $130,000 dollars and is threatening to turn off the heat.

But they're willling to wait now because on Monday, tenants like Park Lane Catering will take action.

Attorney for Park Lane David Pfalzgraf said, "We anticipate pushing the owner of the Statler into an involuntary bankruptcy on Monday."

Park Lane Catering Director Molly Ford said, "The hallways, the foyers are, we sell atmosphere, the foyers, the hallways were not up to our standards, so..."
"We thought it wasn't fair, so we took him to court."

The catering business has a twenty-year lease in the Statler, and claims Issa's company owes them a million dollars in business lost because of the disrepair.

Park Lane has 200 events booked for this year. Most of them are weddings.

News 4's George Richert asked, "And so, when the brides hear bankruptcy on the news what should they think?"

Molly Ford said, "Ahh! I have told most of my brides that that is our goal is to file bankruptcy, so that we could secure it more and that we could have it sold for a fair price. So, no concern."

The owners of Park Lane would consider taking ownership of the Statler if the price was right.

Right now, Bashar Issa's father holds the four and a half million dollar mortgage on the downtown landmark.