By JAMES FINK
Business First

One week after a federal bankruptcy judge named a trustee to oversee the financially troubled Statler Towers, the court-appointed trustee said he is just getting a handle on the downtown Buffalo landmark.

Amherst attorney Morris Horwitz said he has begun the process of stabilizing the Statler's finances - as much as he can. Horwitz on April 23 was named the Statler's bankruptcy trustee after the building was placed into involuntary Chapter 11. The Chapter 11 status came as part of the complex web of legal actions that have been initiated against the Statler's owner, BSC Development Buffalo LLC - a company run by British investor Bashar Issa.

The building has a dwindling tenant roster and has not signed a new tenant in more than 18 months.

The legal action was brought by Park Lane Catering, one of the Statler's anchor tenants, which has allegedly lost more than $1 million in bookings because of the building's poor shape. The Park Lane remains in full operation, with more than 200 events booked at the Statler.

Park Lane Catering owner William Koessler has repeatedly said he is working with a group of Chicago investors who want to buy the building and invest more than $70 million to renovate the 18-story structure, which overlooks Niagara Square.

"No one has met with us or made an offer," Horwitz said.

David Pfalzgraf Jr., Park Lane Catering attorney, said that could happen soon.

"At this time, Bill Koessler is considering his options," Pfalzgraf said.

One of those could be petitioning the Bankruptcy Court for an expedited auction that would force the sale of the Statler.

"There is a possibility we could start the process toward an expedited auction," Koessler said.

For now, Horwitz said he is focusing on collecting all of the rents that are due to the Statler and paying immediate bills such as payroll, insurance and utilities.

A meeting of all the Statler's creditors is set for June 1.

"We are moving things along," Horwitz said. "We're hoping to find a buyer out there. If someone wants to come forward, I wish they would make themselves known."

Issa had pledged to make more than $100 million in renovations to the Statler when he bought the building three years ago. Only a small fraction were ever completed. All renovations on the Statler stopped more than one year ago.

Issa, who is facing legal and financial issues in Manchester, England, has not been in Buffalo in more than one year and allegedly has visa problems preventing him from entering the United States.