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Station Casinos Plans to Exit Bankruptcy
LAS VEGAS, NEVADA --
Station Casinos owners hope to present court officials a plan this month to bring the company out of bankruptcy close to within a year of its July 2009 filing. The plan involves CEO Frank Fertitta and his brother Lorenzo, sons of the company's founder, placing a sizeable equity investment into the gambling operator.
A securities filing by Station said the company had come to terms with creditors holding mortgages on four of its properties. The statement also said progress is being made toward a similar agreement with other lenders.
Station had just taken on significant debt to go private when the recession hit, causing a downward spiral in revenue. Further, Station casinos cater to Las Vegas residents and locals rather than tourists, making the company especially susceptible to deleterious effects from Nevada's high unemployment rate.
Boyd Gaming, Station's most prominent competitor for the locals market, continued to insist it is interested in buying Station assets. Boyd has placed a standing offer of $2.45 billion for properties not mortgaged, which would be 14 of 18 Station casinos.
Station executives have steadfastly refused Boyd's offers, and attorneys for Station have said Boyd is attempting to disrupt its restructuring negotiations by floating sums in front of creditors.
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