By JAMES FINK
Business First

The fate of the Statler Towers remains very much a question mark nearly two weeks after the building's prospective owners failed to meet a federal Bankruptcy Court deadline to close the highly watched deal.

Observers have said little has changed since the Nov. 30 closing deadline came and went.

On one side is a lawyer who represents Park Lane Catering, saying his client is working toward the closing. "We're still working on the deal," said David Pfalzgraf Jr. "Hopefully we'll have something soon."

Park Lane Catering owner William Koessler is one of the principals in New Buffalo Statler Redevelopment LLC, the propspective new owner of the Niagara Square landmark.

New Buffalo made a winning bid at auction of $1.3 million for the 18-story building, which has been plagued by deteriorating conditions and a dwindling tenant base. The company said it has invested more than $750,000 in the building since the court-ordered auction Aug. 12, but it still needs to pay nearly $570,000 in remaining closing costs and another $300,000 in back taxes to get clear title to the building.

Despite missing a Nov. 30 payment deadline, New Buffalo paid carrying costs for the week that ended Dec. 4 and is scheduled to make another weekly carrying-costs payment Dec. 11.

The U.S. Bankruptcy Court-appointed trustee, Amherst attorney Morris Horwitz, and his special counsel, Garry Graber, a partner in Hodgson Russ LLP, who said they are reviewing any and all options.

The future of the 86-year-old Statler has been been murky for more than a year since its owner of record, BSC Development Buffalo LLC, and principal Bashar Issa began facing financial and legal troubles in both Buffalo and Manchester, England. The building was placed into involuntary Chapter 11 protection in April.

This summer's auction attracted two bidders.