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StumbleStation Casinos settles with creditors over bankruptcy plan
Thursday, Aug. 19, 2010 | 9:37 a.m.
Sun archives
- Station Casinos reports wider loss in second quarter (8-16-2010)
- Fertittas win Station Casinos bankruptcy auction (8-6-2010)
- 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)
Station Casinos Inc. of Las Vegas has settled with a second group of creditors that had been fighting its bankruptcy reorganization plan, likely keeping the plan on track for approval next week.
In court papers filed Wednesday, attorneys for Station said a group of independent lenders agreed to drop its objections.
The settlement calls for one or more of the lenders to buy $5.95 million of revolving credit commitments in a new Station credit agreement and for Station entities to pay $2 million of the lenders' $3 million-plus in legal fees and expenses.
"The stipulation reflects an important milestone in these chapter 11 cases. If the stipulation is approved, the debtors will have achieved a fully consensual plan, with not a single objection to confirmation of the plan filed by any holders of claims or equity interests, or any other party in interest," Station attorneys said in their filing. "As a result, the debtors and their estates will avoid the substantial administrative fees and expenses they would have incurred litigating, in this court and in the appellate courts, the numerous issues raised by the Independent Lenders during the course of these Chapter 11 cases. By the stipulation, the debtors will also avoid the delay to the restructuring that could have been caused by such litigation, delay that could have derailed the restructuring altogether. Court approval of the stipulation will allow the parties to focus on implementing the plan, rather than litigation."
A hearing is set for Aug. 27 in Reno's U.S. Bankruptcy Court on confirmation of the plan, which calls for 16 Station gaming properties to remain under the management of the founding Fertitta family. The Fertittas, Station co-owner Colony Capital LLC of Los Angeles, key lenders and some current bondholders will all have ownership stakes in the reorganized enterprise.
The independent lenders were last reported to be owed $244 million, but it's unclear what they are currently owed as the composition of the group has changed. The group currently consists of BNP Paribas, Natixis, Sandell Asset Management Corp./Castlerigg Master Investments, Silver Point Capital L.P. and the Bank of Nova Scotia, Station's filing said.
Earlier during the bankruptcy case filed last summer, Station reached an agreement with unsecured bondholders owed $2.8 billion who will see their debt canceled.
Certain bondholders are investing up to $100 million for a 15 percent stake in part of Station.
During the bankruptcy case the bondholders and independent lenders complained the $8.8 billion 2007 deal in which Station was taken private by the Fertittas and Colony Capital resulted in billions of dollars of losses sustained by the bondholders and the independent lenders. They also complained Station's exit from bankruptcy was arranged to favor Station insiders and its lead lenders Deutsche Bank and JP Morgan Chase Bank.
But Station maintained it was treating all creditor groups fairly and it was the recession -- not the structure of the going-private deal -- that caused losses for everyone involved including the Fertittas and Colony Capital.
Two more Station properties -- Green Valley Ranch and Aliante Station -- were not part of the bankruptcy and their owners have been working to restructure their debt. The Greenspun family, owner of the Las Vegas Sun, is Station's partner in those hotel-casinos.
With its revenue slumping because of the recession, Station posted a $69.6 million loss in the second quarter and said costs associated with its Chapter 11 bankruptcy reorganization totaled nearly $38 million during the quarter.
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I would like to have a breakout of what the attorney fees were. Stations is going to record more loses in the future. They run the organization with disdain for the consumer. I don't know what SOUTHPOINT is doing but they must be doing something right because they are expanding in these difficult times. Stations should take note and find out.
.....The settlement calls for one or more of the lenders to buy $5.95 million of revolving credit commitments in a new Station credit agreement....
They never learn, do they?
Southpoint No 1 :)
I like that hotel not only because it's got nice rooms and a beautiful pool area, but also because they somewhat create a very warm ambiente inside of the casino. On a typical Saturday night in any Station Casino, when there's music coming off from every corner of the building in high volume, people can't impossibly feel at ease. The Southpoint, on the other hand, does not have a silly party pit and still attracts the locals. People don't really want party pits. Perhaps drunk tourists like it, but the gambling seekers do not nevessarily care about the silicon view on the other side of the table. To them, friendly service and good games and drinks coming by regularly are probably the most important reasons for Southpoint's success.
I have already booked the Southpoint again, and I know exactly why I will stay there. Two thumbs up for Southpoint :)
From Switzerland
I agree with THEKASH...if everyone got "tanked" the first time, why do lendors get right back at it (except for the high fee's they make)?
you would think they would have stricter controls like THEY put on US CONSUMERS when lending money...Big Business and the banks - screw us little guys.
BorisR, how does a fellow from Switzerland get to spend so much time in Las Vegas. That is a heck of a flight!
Owe the bank $50k, the bank owns you. Owe the bank $50,000,000, you own the bank.
Foreclosed office buildings would make conversion condos for those forclosed out of houses / only fair -- a cool site; Balkingpoints ; incredible satellite view of earth
Boris....You must be marketing director for Southpoint. Forget about the ambiance and soft music if u don't win some money it's like the rest of the Casinos . They do have good restaurants but stay away from the buffet. Their Loose slots which they advertise is a fraud. Just hang out in the casino for an hour and u will not see or hear any jackpots. As I mentioned before they expanded so they must be doing something right(maybe it's their sportsbook)
The creditors must have found a skeleton in Stations closet for them to even consider a settlement.
All you armchair casino marketing geniuses seem to have forgotten something.
Michael Gaughan(along with Phil Ruffin at TI)owns his property outright. It's a whole lot easier to operate without monthly mortgage payments.
GVR is now offering 6-5 pokie machines. That is the worse odds offered, even the big strip casinos who have no regard for odds dont offer such bad odds. I guess that is why they are bankrupt, bad odds, no regard for the locals, food has gone bad, service is no more. These owners got to big too fast. Go back to what your father taught you and forget about your egos.
chazbean, lol, I am definetely not a marketing director of the Southpoint. But if you check the room rates of the Southpoint, and considering the fact that they even give you a funbook which also includes a few interesting discounts plus a lunch buffet coupon, there's nothing to complain about. The rooms and the pool are really nice and if you pay 50 dollars you don't ask any questions unless you are a bean picker. I don't see anything to complain about the buffet. I don't need super high deluxe M resort style quality as I am not a big eater and don't plan to piggen up. So just for a quick bite the Southpoint buffet meets my demands.
goingbust, yes, the very long flight time from Switzerland into Las Vegas is something that bothers me, but nothing I can do about. Casinos in Europe are so much different from the Nevada style casinos and over here, people visit a casino mainly for hard core gambling. It's not so much fun over here and I always enjoy gambling in Nevada. Unbelievable but true, you have the best videopoker in the world, by far. Cut and dry. The specials these casino restaurants are offering are also unique, although, other stuff such as resort fees or very poor water quality may help me decide finding other gambling destinations in the near future. Everybody knows that Nevada is in the middle of the desert, and water consumption is being done just like there is no tomorrow. When I take a shower over there and compare this to taking a shower in Switzerland, I feel the difference, believe me. However, for a few weeks a year, I come to Vegas and donate a part of my earned money to you folks. It's been so much fun over the years. I don't miss that in the future, either. And there are many other Europeans visiting Vegas for exactly the same reasons mentioned. Vegas is Vegas.
Greetings from Switerland
Michael Gaughan(along with Phil Ruffin at TI)owns his property outright. It's a whole lot easier to operate without monthly mortgage payments.
Stations has not made a mortgage payment in almost 2 years. What are they doing with all that money besides the Fertittas building themselves another million dollar home? Certainly nothing for the employees who have sacrificed dearly for these crooks.
Reading all this info makes me really wonder - Lehman Brothers - all over again! Too Big to fast - thinking they are untouchable.
logic_should_rule - your comment is BANG ON..!
Michael Gaughan(along with Phil Ruffin at TI)owns his property outright. It's a whole lot easier to operate without monthly mortgage payments.
MGM will fail - just like the BIG banks did. It's about time to oust the CEO's running the show and their million dollar salaries. Why pay someone a salary like that... when they are reporting a quarter loss of $883 million
Liquidation time! Mirage? Luxor?
This is another classic tale of Lehman Brothers and GM.
Maybe we should short MGM... they only have about 13 billion in debt!!
I will visit Vegas again, I did enjoy my stay at the Monte Carlo - and enjoyed the Lady Gaga concert.
Say it once I have said it 100 times Switzerland is the biggest as#hole I have never seen only read comments from crappy comments
have a great day an please save save your cash and stay home Switzerland or go some where else .....