Las Vegas – Debt-laden Station Casinos is trying to sell several parcels of land, including the former site of the Castaways casino. The 30-acre site on a gambling corridor off the Las Vegas Strip is listed with a commercial broker for an asking price of USD 39.5 million. The company is also listing for sale 7.96 acres of vacant land next to its Boulder Station casino and 4.7 acres adjacent to Sunset Station.
Station Casinos has secured an extension until May 15 to continue negotiations on a prepackaged bankruptcy with its lenders and bondholders, the company announced late Tuesday. The terms of the proposal, which asks investors holding USD 2.3 billion in bonds to accept between 10 cents and 50 cents on the dollar in cash and new notes as part of a prepackaged Chapter 11 bankruptcy, remain unchanged.
Station Casinos plans to file for bankruptcy by April 15, the gaming company said this week in a federal court filing. Station’s Monday filing came in response to a lawsuit filed by an individual bondholder challenging the gaming company’s debt swap and prepackaged bankruptcy proposal. Station spokeswoman Lori Nelson, however, said Wednesday that the court response does not indicate any change in the company’s plans. „Nothing has changed in our process,“ Nelson said.
It’s no secret that Station Casinos is in deep financial trouble. For weeks now the company has been trying to negotiate a restructuring to avoid bankruptcy. Now, a pending lawsuit could halt those talks, which could force Station into default. So what does that mean for the thousands of Station employees and folks who frequent Station properties? Dan Ball reports. Early Wednesday, news websites across the country stated that Station Casinos will most likely file for Chapter 11 bankruptcy, but now that might not be the case.
Las Vegas (AP) — Boyd Gaming Corp. said Monday that it remains committed to pursuing a deal to acquire some or all of the assets of Station Casinos Inc., even after the rival regional casino operator turned down its buyout proposal. In February, Boyd said it was willing to pay USD 950 million for most of Station’s assets, except for those secured by certain loans.
New York (Reuters) – Station Casinos Inc said on Tuesday it had reached a forbearance agreement with some of its lenders and debt holders, and turned its back on a possible acquisition by competitor Boyd Gaming Corp. In February, Boyd Gaming had said it was interested in exploring an acquisition of Station Casinos, which owns and manages casinos geared for the local population in Las Vegas.
In a filing with the Securities and Exchange Commission, the company said the lawsuit is without merit because all bondholders are entitled to participate in its exchange offer, which is part of a plan to recapitalize the company. No old notes would remain outstanding if bondholders approve the restructuring plan, the company said. In his complaint, bondholder S. Blake Murchison said some bondholders are at risk of losing everything…
While Station Casinos plans to file for bankruptcy in March, a joint venture of the casino company plans to seek financing and break ground within weeks on a USD 200 million American Indian casino in Michigan. Station Casinos spokeswoman Lori Nelson said its tribal gaming contracts wouldn’t be affected by the restructuring because contracts are held separately from the casino company’s financing structure.
(Bloomberg) – Station Casinos Inc., whose Las Vegas-area properties include Red Rock Casino and the two-month old Aliante Station, may be on the brink of default, making its private-equity owners a casualty of the largest recorded decline in gambling revenue. Colony Capital LLC, the Los Angeles private-equity firm that took Station private with the casino company’s founding family in 2007, added more than USD 2 billion of loans and bonds to Station’s books to complete the USD 8.8 billion deal.
New York (Reuters) – Station Casinos Inc said on Monday it is terminating a bond exchange offer after its bondholders deemed the terms offered in the exchange „deficient,“ which may leave the company at the mercy of its bank lenders. The casino operator, struggling with its debt load following a management-lead buyout last year, said it is terminating the exchange as certain terms of the offer will not be satisfied.
Station Casinos’ owners are contemplating putting more of their own money into the firm to weather the current economic storm. They could loan the company between USD 450 million and USD 500 million, as well as conduct a debt exchange, to reduce the locals gaming company’s debt load and related interest payments, a filing Tuesday with the Securities and Exchange Commission said.
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