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Published Monday, April 19, 2010 | 10:47 a.m.
Updated Monday, April 19, 2010 | 5 p.m.
Related Document (.pdf)
Sun Archives
- Station Casinos asks judge for extension in bankruptcy case (4-8-2010)
- 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. of Las Vegas today said certain creditors have agreed to support a plan in which the Fertitta family, Colony Capital and key lenders would control the entire company.
The Fertittas and Colony earlier agreed to take an ownership stake in four big hotel-casinos that are being foreclosed on by lenders. Those properties are called the PropCo properties and are Red Rock Resort, Sunset Station, Boulder Station and Palace Station.
Under a deal announced today, an agreement has been reached between Fertitta Gaming LLC, which is owned by brothers Frank and Lorenzo Fertitta, and a steering committee representing more than 60 percent of the company’s senior secured bank debt, to support Station's plan of reorganization.
These lenders, called the "Opco Lenders" have agreed to support a $772 million “stalking horse” bid by a newly-formed company to be owned by Fertitta Gaming, Colony Capital and the mortgage lenders to the PropCo properties.
Station said the $772 million bid is to purchase the OpCo assets of the company, in addition to the PropCo properties. These additional assets include Santa Fe Station, Texas Station, Fiesta Henderson, Fiesta Rancho and Indian gaming projects.
The company didn’t immediately say whether the $772 million bid would include Station’s joint ventures with the Greenspun family, owner of the Las Vegas Sun. These include Green Valley Ranch resort in Henderson and Aliante Station in North Las Vegas. A Greenspun affiliate in a separate bankruptcy case is trying to replace Station as manager of Green Valley Ranch, charging mismanagement there. Station has denied those allegations.
“We are pleased to have reached agreement with the steering committee of the Opco senior lenders on the acceptance of our stalking-horse bid and our plan of reorganization. This agreement is another important step toward maximizing the value of all of the Station Casinos’ properties for the benefit of our team members, guests, lenders and the Las Vegas community,” said Frank Fertitta III, chairman of the board and chief executive officer of Station Casinos.
Bondholders have yet to weigh in on the reorganization plans.
Similar to the Fontainebleau Las Vegas auction process, the proposed Fertitta/Colony stalking horse bid, if authorized by the court, would be the bid to beat by other parties interested in buying Station assets.
The proposed stalking horse bid was disclosed in court papers filed today in Station's bankruptcy case. The papers outline proposed bidding procedures for the Station assets, other than the PropCo properties.
The papers say Station will entertain bids for all or any portion of the OpCo properties; and joint bids for all or some of the OpCo Properties.
As for the PropCo deal, which was announced March 24, the Fertittas, Colony Capital and the PropCo lenders would hold on to Red Rock, Sunset Station, Boulder Station, Palace Station, the Wild Wild West hotel-casino and land holdings at Cactus Avenue and the southern end of Las Vegas Boulevard.
The Fertittas and Colony Capital would pay $85.6 million for a 50 percent stake in the new PropCo company. That company would assume $1.6 billion in mortgage debt against the PropCo properties.
Hearings on Station's reorganization plan are set for July 15 and July 16.
Competitor Boyd Gaming Corp. of Las Vegas, which has offered to buy Station for $2.45 billion with no success so far, issued this statement today:
"The press release issued today regarding the OpCo assets contained very little in the way of detail about Station's efforts to reorganize its debt, a process that has now been going on for more than a year. We remain interested in acquiring Station assets and look forward to reviewing the plan when it is made available to the rest of the creditors."
I just hope that Boyd stays away from this white elephant!! The Fertittas can swim in their own cesspool of greed on this deal!!
Beat me punch me kick me
I like the Aliante Station Hotel and Casino. I spoke to a representative about this nice property, and she seemed to be flattered. Then, when I said....but....there is something I need to tell you: Station Casinos' policy to take out the customers by charging ridiculous "resort amenity fees" from 11.95 to 24.95 or the like, then I could clearly see that this lady didn't feel too comfortable anymore. I make a million dollar bet that there are many Vegas visitors refusing to pay this resort amenity fee as the hotel forces them to buy stuff they don't really want or need, but without the resort fee they can't check into their room. In a consequence, these people stay elsewhere. Just like me. South Point Casino officially announces in its offers that they're not charging any RESORT FEE. All price is final, plus the official taxes, of course. And that's the way it should be. No hidden charges on shid you don't really need. Station Casinos will have to learn this. Maybe they will, maybe not. They must learn it the hard way. Aliante Station Casinos was almost empty when I was there. It was about 4 p.m. midweek!!!!
From Switzerland
In other word....The Fertitas run up the debt, then declare backrupcy, the come back and buy the backrupt assets for 60 cents on the dollars.
Cool hat trick.
BorisR are you on you usual rant about hotel fees again from way over in Switzerland? You sure that Volcanic ash isnt getting into your water because naturally how would you know the pulse of Vegas from the other side of the world.
It's time to start talking another tune. If you dont like it, dont pay it. You make the choice. But it is no different than fees charged by banks, airlines, car rentals, etc...I just rented a car for one day for $25.00 a day. The fees including taxes, recovery fees, airport taxes, etc. and amounted to $28.50. More than the cost of renting the car! Did i pay it? Of course i did because i knew about it in advance.
Since you mentioned it, I just checked the website at Aliante Station that you are ranting about. I found that Aliante clearly states the hotel fee and exactly what it includes in the fee. Would i pay the fee personally if i stayed? Why not. I actually like the offerings included and i would have paid for the individual inclusions anyway. My last stay in vegas last month was at ARIA and i paid $14.99 for one night of internet service. On Aliante's website it tells me Internet is included in the Hotel fee so now i get it included by paying the fee. Plus i can use their in-room phone to call my kids in New York for free as it says i can get free domestic long distance calls. Thats a great deal and i dont have to pay more on my cell phone bill.
So again i say. You are the customers. You see the Terms listed when booking anything from Airlines to Hotel. You know the charges as they are not hidden. So you get to decide whether to book or not. If you dont, thats your call. But still most people pay and move on with their life.
As for this purchase by the Fertittas. I think it is a great move. Stations has been a big player in Vegas and they always treat us gamers right. Maybe others dont like it. But in the end, they have always done it well for their guests and customers. I am sure there are more positives than negatives.
Happy Gambling.
Hotel101
How long you been working for the Ferttitas?
BOYCOTT STATIONS!
Never
You do as you wish.
FYI - Your medication is on the top left of the medicine cabinet.
Hotel101......... I don't know about u but I am not paying these extra fees for services I don't use. They might as well increase the room charges and you will have a better choice. Don't criticize Boris re Southpoint if he wants to stay in a Casino that advertises LOOSER slots but in realty are as tight as my A.. let him stay there. FYI the slots at Stations aren't any looser!!!!!!
chazbean, I figured that thing about the slots out quite soon after arriving there. Anyway, I still like the South Point as it's my place to sleep, and eat. The lunch buffet for 10 bucks is always worth it, but they gave me a cool funbook which also included the lunch at zero cost (ok, a little tip for the friendly waitress).
I noticed that all coast casinos have removed their 100 per cent machines and South Point is , what I remember, "semi-coast-boyd-gaming". They seem to follow the same policies.
The South Point offers great rooms, a beautiful pool and for a little surcharge it let me use the gym and spa. I was happy with that casino. They didn't get much of my money as I played poker elsewhere. A few hours at nights I plyed in the South Point Poker Room, which in fact isn't a real room but rather a corner of the casino. But it was ok.
Hotel101, if I want internet, I pay for it. If not, I don't pay. I just don't understand why they add "amenities" to the room bill , selling stuff that people don't really need. I also stayed a few nights a the Fiesta Hotel in Henderson. The room deal was ok, but they also added this ridiculous fee. I was aware of it but had a 2-for-1 stay offer, which made the grand total lower than I would have to pay at any other hotel. And the Fiesta still has 100 per cent videopoker, which was a big PLUS.
It is ok if people accept it or not, but it should be up to the customer to decide himself what he wants, and what he doesn't. Station Casinos aren't doing too well. I was just bringing up this point as I have reason to believe that this might be one of the reasons. Typically, people that stay in a hotel also spend some money playing at the machines or tables. If they don't stay at a particular casino for some reason, there's a great chance that they will not gamble there. And that's what may happen at Station Casinos these days.
I used to be a very loyal customer of Station Casinos for years until the day they came up with this resort fee. They started easy, I remember well, at the beginning, they "only" charged 1 or 2 dollars per day for the telephone. Today, they charge you for a white plastic bag thrown at the bottom of the entrance of your room every morning. I wonder how many people even read this newspaper. And how many people actually use internet, especially the ones that travel without a computer. There are more empty rooms at Station Casinos than 5 years ago. OK, that's the same with pretty much all other casinos on the STrip, but it wouldn't have to be that way. South Point Casino knows how to attract the people. They must be doing something right.
From Switzerland
mkmmmm12 - Loved your well thought out comment. Kudos to your teachers.
Boris
Sounds like you work for South Point? How would you know there are more empty rooms today than five years ago? Or is that another one of your random Borisism's??
You all have a great day.
hotel101 ;
You sound like another youngster who has no memory or experiences of what Las Vegas used to be all about. Your just a Vegas corporate programmed next generation type they want to think is getting a good deal. You know NOTHING my friend...
hotel 101 has to be smoking something or as has been said, is more than likely a Ferttita fan. Either way, as Boris stated, IF I want the service, I will ask for it and you can bill me for it. It really should be that simple...
To see key information as to what will happen to Stations employees, go to page 29 of the "Bidding Procedures" pdf posted by The Sun and linked above.
To look at the full document filed with the bankruptcy court today, go to:
http://www.kccllc.net/stationcasinos
Click on "Court Documents" tab on left
Click on Document 1214
That document has the deal points summary right at its beginning.
Bottom line, the proposed buyers of PropCo (Deutsche bank subsidiary, Colony Capital subsidiary, and new company formed by the Fertittas) will apparently borrow up to $772 Million (probably from Deutsche Bank) to buy most of the OpCo Assets, i.e. the Stations assets other than the four hotels covered by the parties separate PropCo deal (Red Rock, Palace, Sunset and Boulder Stations).
Given the fact that the original first lien "secured" lender on the OpCo Assets was a Deutsche Bank entity, it is no big surprise that 60+% of those first lien lenders are happy with this proposed "floor price" for all of the PropCo assets.
So now, if Boyd, Harrah's or anyone else wants to buy just one or two of the casinos, they will have an uphill road to climb convincing Judge Zive to ignore Station Casinos, Inc.'s "business judgment" as to how best to sell off its assets and reorganize in Chapter 11. Remember that under bankruptcy law, Judge Zive is required to respect the business judgment of Stations Casinos, Inc. and not to second guess it, absent very compelling circumstances.
So, to me, it's all over unless Boyd, Harrah's or somebody else can bid $772 Million in cash, for all of the Stations properties other than Red Rock, Palace, Boulder and Sunset Stations.
As to Red Rock, Palace, Boulder and Sunset Stations, they are not for sale through this bankruptcy, simply because Deutsche Bank and its subsidiaries have decided not to give anyone a "discount" on the amount owed on the mortgage loans. Deutsche Bank and affiliates wants to do the de-facto foreclosure, and then set up the entity with the Fertittas as their partner in owning and running those 4 hotels.
As to what happens to the Greenspun's 1/2 ownership share of the Green Valley Station and Aliante Station buildings, it would take a whole lot of reading to figure it out. We'll just wait and see what the Greenspuns file in the bankruptcy court to express their views of their rights.
environprotector - Why are you so in love with Boyd? They're really just so-so operators at best.
Timing saved them because had Echelon been completed, Boyd would be drowning right now too.
This agreement is another important step toward maximizing the value of all of the Station Casinos' properties for the benefit of our team members, guests, lenders and the Las Vegas community," said Frank Fertitta III, chairman of the board and chief executive officer of Station Casinos.
And this guy makes this statement with a straight face?
logic_should_rule :
Lets just say I have a soft spot in my heart for Boyd Gaming because I respect Sam Boyd as a man who worked his way up through the system starting off as a stick man at El Rancho Vegas in the late forties. I was a long time loyal Stardust patron who always got only the best treatment, even after they pulled that bonehead move by tearing the place down, they transferred all of my comps and royal treatment to The Orleans out of appreciation for my years of loyalty. I along with the majority of other loyal patrons signed a petition to the Boyds asking them to reconsider their plans for closing and tearing down the Stardust to no avail. Now all they have is a steel skeleton sitting on a dusty lot. What we don't want to see is Boyds getting involved with this Stations deal, as it will only delay getting something done about the tragic current state of the North Strip desolate condition..
Its called Bankruptcy...Trump Style!
i think its a great deal that Station casino is doing leting people by there casino and the land that they have is more money for them and they can get out of bankrupcy for good so i hope things do work out and the holder can make things better for station casinos.
jaquekeno, that's correct. Boyd gaming put its construction of the Echelon site at halt instantly after realizing what was going on. They did not reach the point-of-no-return, just like MGM with its monster project, the citycenter. So, it wasn't too late to pass up on that and leave the site as it is, making it look like a WW II scenery thing.
Still, this is land that is located on the Strip and something that doesn't help for the Strip to look any better. I don't know what Boyd's plans are: Do they hope some other company will buy the land and the just-started construction sites, or will they resume construction when the economy demands more hotels? Or do they simply have no idea what to do?
I can imagine that quite some money has been invested there, but the site in general looks horrible right now. wouldn't it make sense to turn this entire site into an amusement park until they continue construction? The major hotel construction sites could be locked up from the public, but the main land there could be used for other things. Or perhaps a little cart race park. I don't know. Fact is, tourists don't like walking by this site. Too dusty and too ugly. This also hurts the other casinos' business. Circus Circus says hello.
From Switzerland