gaming:

Station expects extension in talks with creditors

Friday, May 29, 2009 | 12:53 p.m.

Headlines from the Vegas gaming industry

Wrestling with more than $5 billion of debt and weak cash flow, Station Casinos Inc. of Las Vegas today said it expects key creditors to give it more time to reach an agreement on a financial restructuring.

Spokeswoman Lori Nelson said Station expects to receive an extension on a forbearance agreement with creditors that expires today. Under the forbearance, the creditors agree not to take action against Station for it defaulting on debt obligations.

The company expects to receive a signed forbearance extension shortly, Nelson said. It was unknown how long the latest extension would last.

This would be the fourth forbearance extension for Station. The last one was reached May 15.

Station has been negotiating with lenders on a prepackaged bankruptcy reorganization that would keep current owners the Fertitta family and Colony Capital in control of the firm. Bondholders would make concessions while the owners would inject $244 million into the company, now struggling under a debt load of $5.74 billion.

The recession has reduced revenue and cash flow at Station, hurting its ability to make debt payments.

In the first quarter of 2009, gross revenue of $307.6 million was down from $378.8 million in the 2008 quarter.

Operating income and earnings from joint ventures fell from $68.5 million in the 2008 quarter to $29.4 million in this year's quarter.

Discussion: 9 comments so far…

By chazbean

5/29/09 at 2:04 p.m.

Suggest removal

Isn't it amazing how many times the banks are allowing Stations extensions. it's about time Stations is allowed to enter bankruptcy and let the FREE market take over!
By stevem

5/29/09 at 2:20 p.m.

Suggest removal

if the banks would have allowed me this many extentions i'd still have my house.
By bdover

5/29/09 at 2:30 p.m.

Suggest removal

"Squeeze them slots, squeeze them slots."

It's amazing anyone would go to their casinos while they're in such bad shape. They're laying off people left and right, and even giving away less Chinese junk than before...

"Squeeze them slots...."
By formervegas76

5/29/09 at 3:41 p.m.

Suggest removal

my vacation this year will not be at sunset.
By sonny2714

5/30/09 at 1:41 a.m.

Suggest removal

"the locals casino"

ahhh hahahahahahaha!
By boomeranddalejr

5/30/09 at 4:37 a.m.

Suggest removal

think stations casinos should just fall down and forget it - owe too much money
By pgh727

5/30/09 at 6:24 a.m.

Suggest removal

It shouldn't be any surprise that Stations is struggling financially. They retained all their know-nothing "fat heads" and layoff their dedicated, low to medium, hourly workers. And, to think that this company was voted one of the best to work for! Ha Ha...give that editor another comp! Yes, let the free market take over and the locals will benefit. Let the greedy, younger Fertitta's trail off into the sunset, they've made enough from us locals! Very few, if any, will miss ya!
By JohnTaiko

5/30/09 at 3:11 p.m.

Suggest removal

I think I agree.
Fertittas should go away.
Their PA's used to always squeeze me for better prices when I was selling to them.
And while you're at it, why don't you sell off Landry's.
By American_Gaming_Guru

6/1/09 at 1:25 p.m.

Suggest removal

Let Boyd take over!

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