gaming:

Station responds to lawsuit, misses $15.5M payment

Published Tuesday, Feb. 17, 2009 | 1:40 p.m.

Updated Tuesday, Feb. 17, 2009 | 4:20 p.m.

Harrah’s hit with class-action lawsuit over debt plan (2-16-09)
Station Casinos sued over reorganization plan (2-13-09)
Regulators keep tabs on Station, proposed restructuring (2-13-2009)
Bondholders’ issue: Who best to run Station? (2-9-2009)
Station Casinos unveils restructuring plan to appease creditors (2-3-09)
Station, Harrah’s to bondholders: Help us refinance (12-9-2008)

Download the lawsuit against Station

Headlines from the Vegas gaming industry

Station Casinos issued a prompt response to a shareholder lawsuit filed last week.

In a filing with the Securities and Exchange Commission today, 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 in a bankruptcy liquidation because they haven't been given the chance to exchange their bonds for new ones that would be ahead of existing notes in bankruptcy court. He owns two bonds.

The company restructuring plan proposes that bondholders exchange their bonds for notes worth less money. If a majority approve the offer, Station owners will put $244 million in new equity into the company, reducing the company's debt and keeping bank lenders at bay.

In the filing today, Station also said it had elected not to make a $15.5 million interest payment due February 15 following a similar move by the company to skip a $14.6 million interest payment due Feb. 1.

The company hopes bondholders will approve the exchange offer by a midnight deadline March 2. That's when a 30-day grace period on unpaid interest ends nd bondholders can force immediate repayment on the notes. If the restructuring plan isn't approved and the interest isn't paid, bondholders could force the company into a traditional bankruptcy, which could have the owners losing control of their company and could force the sale of the company's casinos.

Discussion: 5 comments so far…

By tvegas

2/17/09 at 1:54 p.m.

Suggest removal

Hey Greenspun

Time to buy them out of GVR
By homer

2/18/09 at 8:33 a.m.

Suggest removal

Ferttitas should be locked up and exposed for the thieves they are.
By BorisR

2/18/09 at 12:37 p.m.

Suggest removal

Hopefully they will not remove the Optimum Play Videopoker machines and also accept the 2-for-1 buffet coupons on my next visit. The 2-for-1 hotel deals off the Las Vegas Advisor aren't good because Station hotels charge an exorbitant "resort fee" of 10 dollars and higher, depending on which property you pick. So, with all the taxes, fees, resort fee , etc, these 2-for-1 specials aren't that good any longer...also, they removed the match play coupons from the books. Why? Do they want me to play black jack elsewhere? it was nice having at least 1 profitable hand going. I was gonna lose anyway, so why no longer offering match play coupons???? Station Casinos has improved...in the negative way....:(
By boomeranddalejr

2/18/09 at 3:06 p.m.

Suggest removal

hey its a OJ hotel -
By johnevegas

2/18/09 at 3:20 p.m.

Suggest removal

"Ferttitas should be locked up and exposed for the thieves they are."

Uh oh, somebody played the slots too much for his budget! Always the victim homer?

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