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Station Casinos Faces April Bankruptcy Deadline
LAS VEGAS, NEVADA --
Court filings revealed an admissio by Station Casinos that the gaming company may likely file for Chapter 11 bankruptcy protection by April 15th. The gambling operator has defaulted on loan payments, and is struggling to reorganize its debt.
A Stations spokesman said the company would have three choices by the mid-April deadline. It would either agree with lenders on a prepackaged bankruptcy pla, file for Chapter 11 without a deal, or ask for a cfurther extension to continue negotiations.
Station Casinos has over $2.3 billion in debt, much of which is due to the cost of taking the company private over a year ago. Some agreement on restructured terms has been reached, but the procedure has been complicated by the lawsuit of a bondholder who fears he's getting left out.
S. Blake Murchison claims the deal being prepared for prepackaged bankruptcy would leave his holdings worthless, as the deal would reward institutional bond holders while putting others at low priority. Station executives deny the claim.
Station has thus far resisted efforts by competitors to pry away casino properties. Boyd Gaming made an offer of almost a billion dollars for Station assets not bound to loans as collateral, but was quickly rejected.
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