Locals casino investors show interest in Station Casinos assets

By Steve Green (contact)

Tuesday, May 4, 2010 | 9:58 a.m.

Operators and investors in a Henderson locals casino say they're interested in acquiring some of the assets that Station Casinos Inc. plans to auction in its bankruptcy case.

Silver State Capital Advisors announced Monday it's interested in acquiring and managing certain of Station's "OpCo" assets that would be auctioned if Station's bankruptcy judge approves the auction plan.

"The assets include, but are not limited to, Barley’s Casino & Brewing Company, Gold Rush Casino, Lake Mead Casino, The Greens Gaming & Dining, Wildfire Casino-Boulder, Wildfire Casino-Lanes (in Henderson) and Wildfire Casino-Rancho. Silver State is working with its private equity partners to finance this acquisition," Silver State said in its announcement.

Silver State, which manages Club Fortune Casino in Henderson, said it's "interested in working with the Station Casinos creditors to make these acquisitions possible."

A Station Casinos spokeswoman today said the company had no immediate comment on the announcement.

Bankruptcy Court hearings today and Wednesday in Reno may determine if Station can proceed with its plan under which certain "PropCo" properties would be foreclosed on by lenders. An affiliate of the founding Fertitta family would hold an ownership stake in and manage the four properties -- Red Rock Resort, Boulder Station, Palace Station and Sunset Station -- as well as the Wild Wild West casino.

Station's interest in the "OpCo" properties such as Texas Station, Santa Fe Station and the two Fiestas would be auctioned under its plan, with the Fertittas planning to bid for these properties. In court papers, Station has proposed that the OpCo properties either be auctioned separately or as a group.

A group of independent lenders and unsecured creditors including bondholders owed $2.5 billion are fighting Station's plans, saying they are rigged to favor insiders at Station, company co-owner Colony Capital and Station's secured lenders. Competitor Boyd Gaming Corp. of Las Vegas has also complained about Station's plans and is expected to continue to try to acquire Station assets.

The Greenspun family, owner of the Las Vegas Sun, is a partner with Station in several gaming projects including Green Valley Ranch Resort in Henderson, Aliante Station in North Las Vegas, Barley's in Henderson, the Green's in Henderson and Wildfire Casino Sportsbook & Lanes in Henderson.

One of Silver State's officers is Peter "Jay" Fennel Jr., who on his website says he was director of slot operations for Station from 2000 through April 2008.

Other officers of the company include Timothy Steinke, who in 2007 was licensed as general manager at Club Fortune; and Sean Manchanda, a gaming consultant.

One of the managing members of Silver State Capital Advisors is CG Silver Investments, which is managed by Carl Giudici. Giudici owned several casinos in Reno and Sparks before opening Club Fortune in 1999 at Racetrack Road and Boulder Highway.