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Boyd pursues Station's assets
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LAS VEGAS REVIEW-JOURNAL
Updated: Apr. 10, 2012 | 9:47 a.m.
Boyd Gaming Corp. filed a motion Sunday in Station Casinos' bankruptcy proceedings, asking the court to allow the casino operator to submit a reorganization plan for its financially troubled rival.
According to the motion, Boyd Gaming, which was rejected when it offered to buy a large chunk of Station Casinos in February for $950 million, is asking the U.S. Bankruptcy Court in Reno to appoint an examiner so other parties can offer competing reorganization plans.
The most likely scenario from a potential Boyd plan would be the acquisition of all or part of Station Casinos, which operates 18 properties in Las Vegas, Henderson and North Las Vegas.
Station Casinos filed for Chapter 11 bankruptcy protection at the end of July.
Last week, the company asked the bankruptcy court for a four-month extension to exclusively propose a plan to reorganize its finances. The current deadline is Nov. 25.
In its motion, Boyd Gaming said it was not opposed to Station Casinos receiving an extension until March to file its reorganization plan.
Boyd Gaming is also a creditor in the bankruptcy, having acquired a stake in Station's debt.
But Boyd wants an outside party to evaluate Station Casinos' assets.
"Boyd believes that the highest priority issue currently before this court is to evaluate sales alternative that realistically could compete with (Station Casinos') attempts to reorganize with insider-retained equity," according to the motion.
Boyd wants an examiner to share information with both Station Casinos and other interested parties, which would allow the reorganization process to move forward on a quicker basis.
In the filing, Boyd Gaming said it is unable to make another offer for Station Casinos until its rival's finances and properties have been evaluated.
Boyd said Station Casinos' management never realistically considered its February offer. Boyd said anything learned by the examiner wouldn't be "competitively harmful" to Station Casinos.
"Boyd expects that the expert serving in that role will arrange to provide the data needed for informed bidding, so that potential buyers like Boyd can provide data on value that (Station Casinos) cannot dismiss as being too hypothetical, conditional or nonbinding," the motion stated.
Boyd Gaming spokesman Rob Meyne declined comment beyond the 38-page filing.
Station Casinos spokeswoman Lori Nelson declined comment on the filing.
Boyd Gaming Chief Executive Officer Keith Smith said last week the company has a $2 billion credit revolver, once designated for the now-delayed Echelon, which can be directed toward acquisitions.
He said Boyd was serious about acquiring all or a portion of its rival.
"Let me be clear. This is a serious offer," Smith said. "Bankruptcy can be a distracting and expensive process, and it does not appear to be in the best interests of anyone for this to drag on."
Smith said buying key assets within Station Casinos' 18-property portfolio in Southern Nevada makes sense for all parties, including Boyd Gaming shareholders, customers, and Station Casinos' creditors, employees and customers.
"We can deliver more value to the creditors with a fair offer and these assets," Smith said. "We believe strongly in the long-term viability of the Las Vegas market."
Station Casinos 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's offer to buy most of Station Casinos' assets 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 a plan "that has the best possible chance of success for the reorganization of the Debtors' businesses."
Station Casinos 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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is court open on sunday
@ Martin bee-- Keep cheerlaeding for Statiosn, you ship is sinking anyways, lol
I do work for stations & though some of the feedback has merit; my checks keep cashing & if your good at your job & don't just phone in your shift you will be treated fine. Their is no free lunch! Business models change. is the post office going to be around in 10 years, doubt it!
Boyd Gaming Corp killed/murdered two of their employees at the Orleans on February 2, 2007 Travis Koehler & Richard Luzier, along with a near miss on a third David Snow! Boyd Gaming Supervisors sent both Richard Luzier, Travis Koehler & David Snow into a toxic manhole at the Orleans for a repair. Richard Luzier went in first and was overcome by the fumes, Travis Koehler was sent in to save him and he too was overcome by the fumes, and last in was David Snow, who was also overcome by the fumes, but survived after being in a coma for a period of several weeks. Watch this:
http://www.youtube.com/watch?v=5LawgS2iqB8
Debi Koehler-Fergen, Travis's Mother speaking in Washington on October 29, 2009.
Boyd Gaming is yet another Casino Company which believes that it is above the law...just like Harrah's Entertainment, Inc does! Harrah's performed, now documented, illegal remodels which left thousands of their hotel rooms unsafe for the public to stay in, and adding insult to injury Harrah's also exposed their construction workers, hotel employees and Hotel Guests to ASBESTOS, a known carcinogenic during the course of many of their illegal remodels.
Boyd Gaming & Harrah's Entertainment, Inc. are both extremely unethical companies, who should be prosecuted for their willful criminal acts!
The problem with Stations has always been how the treat employees. They do everything in their power to prevent unions, including brainwashing their frontline help. I have friends who work at Stations, they are praying for Boyd to rescue them. Stations is now putting the blame of the economy on it's hourly people through pay cuts, hours reductions, benefits cuts, and sweating every move you make hoping to can you. Incredible business model to follow, dont you think?
The worst project in town by far is City Center. No one at MGM/Mirage had the guts to admit that they made a horrible mistake. At least Boyd realized the problem and corrected it before their money was tied up for years on a project that was not bringing cash flow. Stations has made far toooooo many fundemental errors with their business operations along with financial decisions. They are too arrogant to listen to customer complaints. With every move they make, they stick their foot deeper in the financial graveyard. They don't have the slightest idea how to compete in this market. They should get completely out of the business. Their promotions are sad.
John and Melb...you mean the same way that Stations is exanding its gaming empire, all the while shirking on its own debt?
•Station Casinos also manages the Thunder Valley Casino in Placer County, California, which is owned by the United Auburn Indian Community. The Company has also entered into development and management agreements with the Federated Indians of Graton Rancheria to develop and manage a gaming and entertainment facility in Sonoma County, California, the North Fork Mono Rancheria for a gaming and entertainment facility in Madera, California, the Mechoopda Indian Tribe of Chico Rancheria for a facility near Chico, California and the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians (commonly known as the Gun Lake Tribe) for a gaming and entertainment facility in Bradley, Michigan