By JAMES FINK
Business First

The utilities at the Statler Towers remain on at least temporarily, the impending involuntary Chapter 11 bankruptcy has been staved off and the building's owner has two more contempt-of-court citations filed against him.

Other than that, Monday was an ordinary day in the complex saga involving the Buffalo landmark.

In a series of actions that afternoon before state Supreme Court Judge Hon. John Curran, the court-appointed receivers of the Statler agreed to pay National Fuel Gas Corp. $10,000 to keep the gas on at least through April 14. National Fuel Gas is owed more than $210,000 and had threatened to shut off service to the building until Curran intervened late Friday.

Curran also held British investor Bashar Issa, whose firm, BSC Development Buffalo LLC, owns the Statler, on two more contempt-of-court citations for failing to produce evidence of a mysterious 99-year lease he signed with a London firm and over his failure to turn over an $81,000 check he received from New York's Enterprise Zone tax-credit program. The funds were supposed to go to the court-appointed receivers to help the Statler address its mounting debts.

Issa is being fined $250 per day, the maximum allowed by law, on each contempt-of-court charge.

In addition, Curran said he learned that the state withheld $27,000 in rent payments for space in the Statler leased by the Worker's Compensation Board over sales taxes Issa failed to pay when he sold a $500,000 luxury boat last summer.

Issa has not been in Buffalo in more than one year. He says visa problems prevent him from entering the country.

An involuntary Chapter 11 proceeding under the U.S. Bankruptcy Code against Issa and BSC Development Buffalo remains in the background, but no filings had been made as of Monday afternoon. The bankruptcy proceeding is being considered by Park Lane Catering, one of the building's anchor tenants, who started legal action against Issa and BSC Development in December.

Meanwhile, negotiations between Park Lane Catering and Issa, along with Issa's father, Mohmouud Al Issa, who holds the mortgage, continue to inch forward. Park Lane wants to buy the former hotel.

"The Park Lane is still hopeful," said David Pfalzgraf Jr., Park Lane Catering's attorney.

Pfalzgraf said all events the Park Lane has booked at the Statler will go forward. The Park Lane has more than 200 upcoming events scheduled for the building, but says it has lost more than $1 million in bookings because of the building's uncertain future.

"All of the events will continue," Pfalzgraf said.

Issa bought the 18-story Delaware Avenue building three years ago and had promised more than $100 million in renovations. Few, if any, ever materialized.

The building is losing nearly $80,000 a month, according to court documents, and has seen its tenant base dwindle to 25 tenants.

Issa is also facing financial problems in Manchester, England.