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Nov. 12, 2009
Copyright © Las Vegas Review-Journal

Station Casinos accuses rival of 'manipulating' the bankruptcy process

By HOWARD STUTZ
LAS VEGAS REVIEW-JOURNAL

Station Casinos has accused Boyd Gaming Corp. of “attempting to improperly manipulate the bankruptcy process” in an effort to “pick off and dismantle its chief competitor’s assets.”

In a filing Thursday with the U.S. Bankruptcy Court in Reno, Station Casinos said Boyd Gaming does not have standing in the company’s Chapter 11 proceedings.

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    • Station Casinos asked that Boyd Gaming’s request that a third-party examiner be appointed to review Station Casinos’ financial records be denied.

    “Boyd is attempting to use an examiner to gain access to (Station Casinos) confidential business information to disrupt (Station Casinos) business and obtain for itself a competitive advantage,” according to the filing.

    Station Casinos, which filed for Chapter 11 bankruptcy protection at the end of July, asked the court for a four-month extension to exclusively propose a plan to reorganize its finances. The current deadline is Nov. 25. The motions will be argued in Reno on Nov. 20.

    Boyd Gaming, which was rejected in February when it offered to purchase a large portion of Station Casinos’ 18 Southern Nevada properties for $950 million, entered the fray in a 38-page filing with the bankruptcy court on Nov. 1, claiming it has purchased some of Station Casinos debt.

    “We haven’t seen any evidence of it,” Station Casinos Chief Development Officer Scott Nielson said Thursday.

    Boyd Gaming spokesman Rob Meyne said the company disagreed with Station Casinos’ comments in the motion.

    “Station had previously characterized Boyd as not being serious in our interest in buying Station’s assets,” Meyne said. “One purpose of our motion was to correct this mischaracterization and to make our serious interest in acquiring these assets crystal clear. The bankruptcy court will determine how these issues are resolved and we look forward to participating in that process.”

    In Thursday’s filing, Station Casinos said Boyd’s request that an examiner be appointed is premature.

    The company is working to develop a reorganization plan with its creditors that is in the best interests of the stakeholders, but the complexity of the company’s debt structure is the reason additional time is needed.

    “None of those legitimate creditor groups are advocating for a sale process at this point in time,” the filing stated. “All parties are working diligently to create an appropriate corporate structure for the reorganized enterprise, taking into account, among other considerations, complex tax issues and the correct capital structure, including adequate working capital with financeable and sustainable debt levels,” according to the filing.

    Nielson said the company spelled out the inner workings of the reorganization negotiations in the filing so that observers can understand the process.

    “The bottom line for us is that we should be given a fair opportunity to reorganize our company and protect jobs,” Nielson said.

    Boyd Gaming, in its motion, said it did not oppose Station Casinos being given more time to file its reorganization plan. However, Boyd wants an outside examiner to look at Station Casinos books in order to share information. The rival locals casino operator said it can’t make another offer for Station Casinos until the company’s finances and properties can be evaluated.

    Station Casinos said the bankruptcy process is not far enough along to call for an examiner. In its filing, the company said the appointment “would be disruptive and an impediment to the (company’s) orderly reorganization.”

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

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    Robert wrote on November 18, 2009 04:01 PM: If anyone would look at the timelines, Stations remodeled all of their Casino's, Built 2 new ones and then filed Bancruptcy. It was planned from the beginning. Also, a very good move using the down market to cover it up.


    Coma Tose wrote on November 16, 2009 05:14 PM: The Fertitas are wealthy beyond what any of us will ever see or have. They screwed up a thriving company and should lose it all but alas, they won't, their employees will be the big the losers.
    They all will still have $Millions!! in the bank.


    GO BOYD!! wrote on November 16, 2009 11:41 AM: Go Boyd! Ya knock them right in there stinking socks I love it I hope they have to sell to you guys Please let it happen those jerks they totally suck!!!! Stations sucks terrible management. They deserve everything they get keep up the good work Boyd dont stop hurt them....


    Giving You The Truth wrote on November 13, 2009 03:35 PM: Stations is bloated, it is time for Boyd to take over for the best interests of the employees.


    cb24 wrote on November 12, 2009 11:46 PM: i love it!!! go boyd gaming get stations is terrible!! oh how people forget that at Santa Fe in June they had a murder there!! Opps they dont want you to know about that!


    Carman wrote on November 12, 2009 10:48 PM: Ha! Ha! Are the Fertitta boys getting a little scared?? That's what happens when you are forced in bankruptcy morons, you expose your company to takeover - simply business boys! Ha! Ha! Go get 'em Boyd. I wish I was leading your takeover team....


    Jay from Summerlin wrote on November 12, 2009 10:33 PM: Waaaaah!


    Dale Gribble wrote on November 12, 2009 09:10 PM: LOL! I love all the lawyers and fiance'ers out here....keep looking for work you unemployed dolts.


    Mike wrote on November 12, 2009 05:52 PM: As a vendor to both Boyd and Stations I have to say that I appreciate the fact that Stations has continued to pay me on time.


    bigd wrote on November 12, 2009 05:48 PM: Any thing that the Boyd group would do could be an improvement of what has occurred since the senior Fertitta stepped aside and and turned over the reins of casino operation to inexperienced people, what a shame to see what happened to the casino strucutre that was originally started by the late Carl W.Thomas, he must be turning over in his vault. Good luck to the Boyd group.


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