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Oct. 27, 2009
Copyright © Las Vegas Review-Journal

Station Casinos files for reorganization extension

By HOWARD STUTZ
LAS VEGAS REVIEW-JOURNAL

Station Casinos has asked a federal bankruptcy judge for a four-month delay in proposing a reorganization plan for the company, a move attorneys for the Las Vegas-based casino operator hinted at last month.

In a filing Friday with the U.S. Bankruptcy Court in Reno, Station Casinos asked Judge Gregg Zive to extend a Nov. 25 deadline until March 25, saying the recession has made formulating the reorganization plan a challenging task.

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    • Station Casinos said its properties are still being "negatively impacted" by the sour economy.

    "The financial performance of many of the Debtor's key business units have yet to stabilize, making valuation of the Debtors' businesses and assessments of their future prospects -- and therefore the formulation of a plan of reorganization -- extraordinarily challenging," the filing stated.

    The matter will be heard on Nov. 20 in Reno. Last month, Station Casinos attorneys told the judge they would most likely file a motion seeking an extension.

    In the filing, Station Casinos attorneys said the company needs more time to file a plan because there have been "conflicting and competing interests" among the various creditor groups, which are "jockeying for position."

    "In the face of this intercreditor jockeying, the Debtors may be the only parties in a position to advance a plan of reorganization that properly balances the interests of all of the estates and their respective stakeholders," according to the filing.

    The company filed for bankruptcy protection on July 28 with roughly $6.5 billion in long-term debt.

    Creditors are feuding over portions of Station's November 2007 transaction in which it was taken private by an affiliate of Los Angeles-based investment firm Colony Capital and the Fertitta family, which founded the company.

    One group of creditors believes Station Casinos' board may have had conflicts of interest when it rejected Boyd Gaming Corp.'s offer to buy most of Station Casinos' assets for $950 million and when it arranged financing for the company's buyout.

    The lenders are questioning whether the buyout's financing, which is divided into three stacks of loans, each with different investors but all controlled by Station Casinos' board and administrating bank, Deutsche Bank, might be improperly benefiting the company and its primary lenders at the expense of the smaller lenders.

    Company attorneys told the judge extending the timeline could save time and money while allowing Station Casinos to come up with plan "that has the best possible chance of success for the reorganization of the Debtors' businesses."

    Station Casinos operates 18 properties in Las Vegas, Henderson and North Las Vegas. The company also manages an American Indian casino near Sacramento, Calif.

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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    ex gambler wrote on October 27, 2009 10:38 PM: Hey Carl, they don't care. The Fertittas cashed out in 2007 and couldn't care less if the place imploded. Now that daddy is dead, they don't have to answer as to how they ran the company into the ground.


    carl wrote on October 27, 2009 09:22 PM: Station's stinks. Went to the Santa Fe on a Saturday night - their biggest night of the week, it was a GHOST TOWN. Adios lienholders! Ha! Ha!


    Harry wrote on October 27, 2009 08:13 PM: yep, College educated, need to get that college education


    Credit companies are saying wrote on October 27, 2009 06:42 PM: Show me the money!

    Show me the MoneY!

    Show me the MONEY!!!!!!!!!!!!!!!!!!

    Ca-ching


    lol wrote on October 27, 2009 05:22 PM: Didn't they do this big stall song and dance with the bondholders a few months ago. Stall, Stall, Stall and then screw em into the dirt!


    KRS-Two wrote on October 27, 2009 12:53 PM: Stations is in desperation mode: they are sweating employees hard for anything and everything, they are the cheapest when it comes to comps for players, and have terrible upper mgt.at all properties. The worst of all of this is sweating the front-line employees, don't they realize if you screw your foot soldiers it will rub off on how they treat the guest? Don't be surprised if you see frowns and long faces at Stations these days and don't take it personal.


    American Gaming Guru wrote on October 27, 2009 11:57 AM: Boyd reiterated today how serious they are in acquiring all or part of Station. While BYD's earnings are down, they are still positive therefore not burning through cash.


    jm wrote on October 27, 2009 11:42 AM: Well when the brothers have 365K cars, private jets, 10,0000sq ft homes and they are going bankrupt..Pricless


    1 wrote on October 27, 2009 10:55 AM: 3


    Jaime wrote on October 27, 2009 10:51 AM: Fertita = Madoff. They grab the money and run. Wheres the govt policing these guys? Lets get the cash back!!! Just like Wall Street - the big shots grab the money and run leaving empty shells the public gets to clean up! As Harry Reid watches all along doing nothing! Now he's our hero? Please!!! ANYONE but Reid - the Bush Obama lapdog!!


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