Facebook
Fark
Digg
Reddit
Stumble
Thursday, April 8, 2010 | 10:34 a.m.
Sun archives
- Station Casinos reports revenue drop in fourth quarter (3-31-2010)
- Station Casinos reorganization plan: Sell several properties (2-25-2010)
- Station Casinos reaches deal with key lenders, hopes to emerge from bankruptcy (2-25-2010)
- Bankruptcy judge urges Station Casinos, creditors to negotiate (1-25-2010)
- Fertittas seek to block creditors’ lawsuit in Station bankruptcy case (1-12-2010)
- Station Casinos bondholders want permission to sue (12-29-2009)
- Culinary Union sides with Station Casino’s creditors (11-23-2009)
- Culinary Union statement critical of Station Casinos (11-19-2009)
- Creditors want to expand probe of Station Casinos deal (11-19-2009)
Station Casinos Inc. on Wednesday asked its bankruptcy judge to further extend the period in which Station alone can pursue a plan to reorganize its Las Vegas locals casino empire.
With the recession reducing spending at its hotels and casinos, Station was unable to make required debt payments and filed for Chapter 11 reorganization in July.
Station on March 24 filed a reorganization plan in which lenders and Station insiders would keep five of the company's properties and certain land holdings.
The remainder of the company assets would be sold. Those assets include interests in 13 casinos, other land holdings and Indian gaming contracts.
Cash raised in the sale would be used to pay some of the company's debt and obligations, last reported as totaling $6.6 billion. Members of Station's founding Fertitta family plan to bid for the properties to be sold.
The five properties to be retained by members of the Fertitta family, Station co-owner Colony Capital and lenders to those properties are Red Rock Resort in Summerlin, Sunset Station in Henderson; and Boulder Station, Palace Station and the Wild Wild West in Las Vegas.
Red Rock, Sunset Station, Boulder Station and Palace Station are known in the bankruptcy case as the "Propco" properties because they are encumbered together by debt totaling $2.475 billion. Station's other assets are known as "Opco" properties.
Bondholders and creditors not involved in the deal involving the five properties have not yet responded to Station's reorganization plan and it's unknown if that plan will survive intact.
Bondholders alone are owed $2.3 billion by Station and, like other creditors, they are facing deep losses in the case as the recession has slashed the value of the properties to be sold or transferred. The Propco lenders alone have agreed to exchange their $2.475 billion claim for an ownership interest in the Propco properties and a $1.6 billion mortgage.
In large complex bankruptcy cases, reorganization plans typically are amended in response to creditor concerns. The plan for the Lake Las Vegas development in Henderson, for instance, was amended three times before the bankruptcy court allowed Lake Las Vegas to solicit votes from creditors on the plan.
In court papers filed Wednesday, Station asked that Judge Gregg Zive extend the period during which no other party may file a reorganization plan from May 24 to the dates the court has scheduled hearings on Station's reorganization plan: July 15 and July 16.
Station, in court papers, is now calling the transfer of the four Propco hotel-casinos to the insiders and lenders "essentially a foreclosure by the Propco lenders on those Propco assets that are collateral for the Propco loan."
In a filing Wednesday, Station said the sale of the Opco properties can be completed before the July 15-16 hearings. The company said that while it sells the Opco properties and seeks confirmation of its reorganization plan, it "should be allowed to pursue such efforts free of the concern that the exclusive period will expire."
"In order to ensure that the sale process will yield the highest or otherwise best bid for the Opco assets, the exclusive period should be extended to allow the (reorganization) plan solicitation and sale processes to run in parallel through the (plan) confirmation hearing date," Station said in its filing.
A May 5 hearing has been set on Station's request for an extension of the exclusivity period.
Another move by the Fertitta boys to buy back their assets for pennies on the dollar..meanwhile screwing the bondholders...
Just sell to Boyd already....
"free of the concern that the exclusive period will expire" aka free of the concern that Boyd can meddle in our own self-dealing!
The creditors should demand, 'No more extensions, sell now or we will foreclose.' Stall tactics by the Fertittas. They are pure thieving scum that deserve only to lose controlling interest in their fathers business. Creditors should state that the Fertittas have lost all equity in their delinquence of payment.
How about the Greenspun connection? Isn't this paper a partner in Stations? What is happening with this position and how is effecting the outcome?
frank jr, the late frank jr, what a gentleman. these boys ever since UFC came to light have heads bigger than their bankrolls. i took a hit on the bonds and so am biased ,but agree with the responder, they should lose them all. if the bk judge wasn't concerned about reelection and contributions from lorenzo ,ufc and frank III he would demand action today, not in three more ,six more months. the places are decaying as we write these missives and good. their eyes were bigger than their stomachs and they wasted a buffet full of possibilities
Why are the Fertitta's and Colony able to hold on to the 5 properties? Don't they have to put some more money into them or put it up for sale with the others.What about Fertitta interest in the UFC? Stop with the extensions. The only ones making money are the Attorneys! Boyds is not the answer.
The Fertittas should be in jail for grand theft. Green Valley was nothing but a cat house and drug emporium for years. It was even on TV that way.
Not only did TheDirty.com break the news about Rich Franklin replacing Tito Ortiz, the site received confirmation from their Vegas Casino VIP host about the rumor circulating around town that Dana White is stiffing the Bellagio for a $1 Million gambling debt.
The Vegas Casino Host said: "The Bellagio establishment hopes a man of Dana White's pedigree and stature in Las Vegas decides to make good on his debt. We have been unsuccessful in retrieving what is owed to us thus far, but are very confident he will come through on his marker."
Lol! I am sure the Fertittas are thrilled that their UFC boy is gambling his paycheck in other than a Stations property. But then, Dana dare not renig on gambling bets with the 'Family.'
@ jaquekeno
FYI, the Fertittas are in bed with the mortgage lenders, all affiliates of Deutsche Bank. That's why the mortgage lenders are not screaming that they want to foreclose.
Under this Chapter 11 Plan proposed by Station Casinos, Inc. with the consent of the Deutsche Bank entities, the Deutsche Bank entities with first liens will, in effect, foreclose and then the Fertittas will pay Deutsche Bank millions of dollars to "buy back in" to the primo properties, excluding Green Valley and Aliante.
As to any alleged debt of Dana White to MGM Mirage (Bellagio) it will be interesting to see if the claim is true. You will only KNOW if its true if the Clark County D.A. files charges. Sometimes these things are settled privately without the D.A. getting involved, in which case it will simply be another part of Las Vegas folklore.
WIZARDOFOZ..... You can go to almost any local Casino (Palms , Rampart, Orleans) to name a few and u will get friendly people. I think u don't understand that we are in a RECESSION and the locals have to give u VALUE ! Hello.
I think it likely that Greg Zive will approve the Propco agreement between Stations, Colony, J.P. Morgan, and Deutche. Since the principle parties have come to an agreement, there's no reason why he wouldn't approve that settlement.
As for the OpCo properties, that's where things get a little confusing. I'm not entirely sure why Stations keeps pushing for the bankruptcy court to sell the casinos as an entity, instead of piece mailing them out.
For one, it seems that there is more value to the bond holders and lenders if the casinos are sold individually. Green Valley Ranch or Santa Fe Station certainly would hold appeal to many potential bidders, whereas purchasing those casinos along with the Gold Rush, the Wildfire's, The Greens, etc. limits investment potential. It's basic Finance 101 - everything is cheaper when you purchase in bulk. So how can it be advantageous to the maligned investors if the package of casinos and properties is sold in bulk?
That brings us to Stations position in the matter. They have laid claim that they want to re-purchase the entire kit and kaboodle. What puzzles, however, is how they intend to do that?
The new Fertitta gaming company, if approved by the bankruptcy court, is half owned by two banks, Deutche and Morgan. While banks will take on ownership of casinos they foreclose on, they have shown no interest in the past in investing in new casinos.
Deutche and Morgan have no claim on the OpCo properties, and to move forward in procuring ownership of these properties would seem to be highly unlikley, at least historically.
Perhaps I am wrong, but I think Stations is sending out smoke signals in their interest in keeping the entire company in tact.
The new Fertitta gaming company will be less encumbered in debt, and have the potential to invest in new properties, outside of the overly saturated Las Vegas locals game.
Stations is a well run, smart company, who made a brilliant play by privatizing when they did. Although it may seem to those who haven't paid attention that things have gone wrong; for company insiders and owners, it couldn't have worked out better.
They made vast amounts of money when they sold their shares of the private company, and now are in a position to wipe away millions of debt through bankruptcy protection, while still retaining management and part ownership of the company.