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Las Vegas Sun file
Texas Station was among 11 casinos that were on the auction block in the Station Casinos bankruptcy case.
Published Friday, Aug. 6, 2010 | 11:50 a.m.
Updated Friday, Aug. 6, 2010 | 1:23 p.m.
Sun archives
- Fertitta family, lenders maintain highest bid for Station Casinos properties (8-5-2010)
- Station Casinos, bondholders settle dispute (7-28-2010)
- Station Casinos bondholders renew interest in suing over deal (7-9-2010)
- New objections filed in Station Casinos bankruptcy case (7-2-2010)
- Station Casinos, Herbst Gaming fight bondholders in bankruptcy cases (6-17-2010)
- Station Casinos bondholders seek delay in auction process (6-9-2010)
- Judge OKs Station Casinos’ plan to sell 11 casinos (5-28-2010)
- Judge deals blow to Culinary Union effort in Station Casinos bankruptcy case (5-27-2010)
- New objections filed to Station Casinos bankruptcy plan (5-25-2010)
- Station Casinos loses $53.5 million in first quarter (5-17-2010)
- Station Casinos: No competitive advantage under bankruptcy plan (4-29-2010)
- Station Casinos: Boyd Gaming meddling in bankruptcy case (4-28-2010)
- Boyd Gaming objects to Station Casinos reorganization plan (4-22-2010)
- Union-backed group critical of Station reorganization plan (4-21-2010)
- Creditors attack Station Casinos bankruptcy plan (4-21-2010)
- Key lenders agree to Station Casinos reorganization plan (4-19-2010)
- Station Casinos asks judge for extension in bankruptcy case (4-8-2010)
RENO – A final roadblock may have been removed to permit Station Casinos Inc. of Las Vegas to emerge from a more than year-long bankruptcy case with the founding Fertitta family still at the helm.
Paul Aronzon, attorney for Station, said Friday that an agreement has been reached with a second group of unsecured creditors, calling it a “milestone.”
He told federal Bankruptcy Judge Gregg Zive Friday that this “paves the way” to get final approval from creditors to the plan by the Las Vegas company to emerge from bankruptcy.
Attorney Eric Goldberg, representing these independent lenders, said there was a framework for a settlement in place, “but the devil is in the details.” These lenders were last reported to be owed $244 million.
“There may be objections to the confirmation,” he said referring to the Aug. 27 hearing for the judge to approve the plan to emerge from bankruptcy.
Zive said, however, it appears that confirmation will be “consensual.”
Aronzon said he hoped the settlement with the independent lenders could be wrapped up in the next week.
In a hearing that took less than 40 minutes, Zive approved the “stalking horse” bid of $772 million submitted by members of Station's founding Fertitta family and their lenders to retain 11 casinos that were put on the auction block.
Station was termed the only “qualified” bidder for the properties. Boyd Gaming Corp. of Las Vegas had considered bidding, but dropped out, saying the process was rigged to favor Station insiders -- charges denied by attorneys for Station.
After the hearing, Scott Nielson, executive vice president of Station, said this means all of the properties will continue under the Fertitta family's management if the bankruptcy plan is approved Aug. 27.
This bankruptcy process, said Nielson “has allowed us to shed some debt and emerge a much stronger company from a financial standpoint.”
“It gives us a fresh start,” and the opportunity to focus on friendly service and good value, he said.
Station filed for bankruptcy more than a year ago with close to $6 billion in debt.
During the court proceedings, Station reached an agreement with unsecured bondholders owed $2.8 billion. In exchange for up to a 15 percent interest in five of the casinos, the debt will be canceled.
Some of these bondholders have agreed to invest up to $100 million for the 15 percent stake in the "PropCo" unit that owns Red Rock Resort, Boulder Station, Sunset Station, Palace Station and the Wild Wild West. PropCo is to be owned by its mortgage lenders, the Fertittas, Station co-owner Colony Capital LLC of Los Angeles and the bondholder investors.
The bondholders had earlier complained the 2007 deal in which Station was taken private by Fertitta and other Station insiders and Colony Capital had harmed the bondholders by overwhelming the company with debt and dooming it to default and bankruptcy. The bondholders have agreed to stop pursuing that claim.
The 11 casinos that were on the auction block included Santa Fe Station, Texas Station, Fiesta Rancho in North Las Vegas, Fiesta Henderson and the Wildfire Boulder and the Gold Rush Casino.
Not included in the bankruptcy proceedings were Green Valley Ranch and Aliante Station, where Station is in partnerships with the Greenspun family, owner of the Las Vegas Sun. Nielson said these casinos were going through their own debt restructuring process.
Whew-what a relief, that was a close one- now lets do it again
did anyone have any doubts? We'll be reading the same story again in 6yrs..
Too bad for the employees
I offered to auction off my home mortgage and allow me to be the "stalking horse" bidder for half the price, but my bank said no. Go figure...
Ok, we know all this now. I suggest the following "revival promotion" for the next 6 months:
a) all resort amenity fees will be stopped and elininated
b) 1.99 usd steak and eggs special from midnight till 6 a.m. in all station coffee shops
c) at least 100 per cent more Optimum Play machines plus Optimum Play progressive in all Station Casinos
d) better comp value for slot players
e) buffet special 3.99/4.99/6.99 until further notice, with Boarding Pass Card.
This will attract more players and tourists and will help jump-start business again.
Thank you for your kind attention.
From Switzerland
lvsreader-great comment
How the hell is this allowed or even legal? What a sham!
Now git busy Frittatas! We need jobs and a Mountains Edge Station Casino and a Mt. Charleston Station Casino.
"How the hell is this allowed or even legal? What a sham!"
Do you hate the player, or do you hate the game? This is available to any business owner. Go launch a business and it will be available to you.
The rule of thumb for success is: Take time to understand the rules and limitations of the system, and then work it for all its worth. No shame in that.
Maybe they will change Double Double VP machines back to 9/6 from 7/5
Congratulations Fertitta Family
In the picture they should have oil gushing out of the Texas Station Oil Well. They hit oil on this deal $$$
gee that's a suprise....
Everybody knew what the rules were going into their investments -- and the rules were followed. I can understand the losers being sore, but they shouldn't complain. This puts the clubs in a positive go-forward position. Stations didn't grow to be what they are/were by mismanaging the properties, they grew because they knew how to offer what people wanted.
Oh really and if these properties were so well managed and ran by these con artists,, why the bankruptcy filing..... You got the answer for that Sheitwise....
This is the con of all cons if I ever seen one....
@@Sheetwise:
Everybody knew what the rules were going into their investments -- and the rules were followed. I can understand the losers being sore, but they shouldn't complain.
=====
That applies to the homeowners who are underwater too, right? It should be just as acceptable for homeowners to strip off their second mortgage debt using Chapter 13 bankruptcy as it is for the rich folks to strip off their business debts in Chapter 11.
I think they should restart that progressive VP at each Station starting at $100,000 and increases each day until someone wins before hitting $150 . I thought that was a great promo.
chazbean, are you talking about videopoker or live poker? 100,000 jackpot on a v-poker sounds indeed like a super promo, but it must'of been 1 dollar machines. Or are you referring of the Jumbo Jackpot (Stations Poker Jumbo?)
I am currently preparing my next trip to Vegas, looking up for the best promotions available. I hope the Hard Rock Poker Room is still offering the cool 4 for 40 at nights and all the other good deals they offered last spring....
Greetings from Switzerland
Red Rock's Poker Room should install some HIGH HAND JACKPOTS to attract some new business. Every other Stations properties are doing something.
I don't see any one good reason to play poker at the red rock poker room. Perhaps the 4-8 limit game when there's a huge bad beat jackpot could be something. The 1-2 nl games there are a joke. Would never player there again. The local crowd must realize that it's shot itself in the foot. 10 per cent up to 4, plus the drop and the tip, who can beat this game if there are the same players sitting there all the time, and most of them are halfway equally skilled? It is a known fact that you can only win at poker if you
a) get extremely lucky and draw out more often than others in key situations, or
b) get enough weak players to pay for the rake and all other expenses, making enough errors to make your own game become a EV+ game.
I don't think that these 1-2 nl games at the red rock have enough potential for people to win money. It's rather a waste of time sitting there. Just like playing double double bonus poker with 99 per cent payback. You either win, or lose.
From Switzerland
this "bankruptcy" was a total scam--how does this group who already cashed out get the properties back pennies on the dollar---these properties should have been split up and sold to the highest bidder--THIS WAS A TOTAL SCAM. Once again the old families in town come away with all the assets because of the old boy network here in nevada.
Yeah! I was worried that I would have to give up my stations rewards card. My points are very important to me...
I wonder why they would want to buy back already losing properties in this economy? Wouldn't it be wiser to shed them and try to survive this economic downturn ?
It will be interesting to see how they do in the next few years. Stations may have lost a little of their "luster" from the 15 % unemployed in the neighborhoods.
Boycott Stations
Tvegas - Boycotting stations is going to do what for the employees that work there? Great Idea - NOT
LVSreader....good point! The Fertittas played this one beautifully. Unfortunately they used the law to their advantage and hung many investors out to dry. It is the law though. Trump does it all the time with his own casinos. Some BK laws in this country are insane.
Chunky says:
Of course they did!
How clever! Rack up a bunch of debt, file bankruptcy and then buy your stuff back for pennies on the dollar!
Chunky sometimes wishes he was clever or sleazy enough to stoop that low! Meanwhile, Mr. and Mrs. Chunks will continue to pay their measly mortgage on their undervalued home until all this mess turns around.
That's what Chunky thinks!
Cognastics --
"It should be just as acceptable for homeowners to strip off their second mortgage debt using Chapter 13 bankruptcy as it is for the rich folks to strip off their business debts in Chapter 11."
-----------------------------------
In fact, many people did just that. They took out second and third mortgages and put the cash in their pockets. Today, they're upside down and can walk away from their mortgages.
Although, I doubt the terms of the Stations loan agreements were at all similar to the terms of a home mortgage. All contracts can be exploited, and all investments carry risk. If you don't understand what you're doing or what the risk factors are -- don't play.
All I know is that the Station Casino bonds in my retirement account are virtually worthless, while the Fertittas are mopping up once again. The individual investor is always at the bottom of the food chain. I can never bring myself to visit the Station casinos again.