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StumbleJudge OKs Station Casinos’ plan to sell 11 casinos
Friday, May 28, 2010 | 2:53 p.m.
Sun Archives
- 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 federal bankruptcy judge has approved plans by Station Casinos to auction off 11 of its gambling properties to satisfy some creditors.
Judge Gregg Zive ruled Friday that July 30 is the deadline for bids. The auction will be Aug. 6.
The decision was a setback for groups of creditors who wanted the judge to set aside the auction plan on grounds it wouldn’t produce enough money to satisfy some of the minority lenders and unsecured bondholders. Independent lenders are owed $224 million and bondholders are owed $2.5 billion.
Bonnie Steingart, a New York lawyer, said the committee of creditors could consider an appeal.
Station Casinos filed for Chapter 11 bankruptcy protection last July, listing $5.9 billion in debt. It developed a plan it believes can put it back on its feet.
It calls for the major creditors of Station – Deutsche Bank and JP Morgan Chase – to join with casino operators Frank and Lorenzo Fertitta to hold on to five of the company’s largest hotel-casinos: Red Rock Resort in Summerlin, Sunset Station in Henderson and Boulder Station, Palace Station and the Wild Wild West in Las Vegas.
The group, together with Colony Capital of Los Angeles, would submit a “stalking horse” bid of $722 million for 11 of the casinos, including the two Fiestas, Texas Station and Santa Fe Station.
The judge called the $722 million bid “an adequate floor to commence the auction.”
The auction, however, doesn’t complete the process, said the judge. He said he still must approve the bankruptcy reorganization plan.
He warned lawyers on both sides they must show good faith in the sell-off plan.
“I reserve the right to revise any of the matters, and I will” if good faith is not displayed, Zive said.
The potential bidders have until June 30 to submit a letter of interest. Bidders must submit a proposal $17.5 million higher than the $722 million “stalking horse” bid.
The judge approved a plan on how to separate the company into two.
Station Casinos now has 18 gaming locations, but two of them are not in the auction -- Green Valley Ranch resort and Aliante Station are joint ventures with the Greenspun family, owner of the Las Vegas Sun.
Land holdings in Nevada and California would be divided between the groups.
Deutsche Bank and JP Morgan Chase weren’t interested in running all 18 casinos. The judge said just spliting the two companies would have “dire economic consequences.” Zive heard a full day of testimony Thursday that ended at 8 p.m.
A spokesman for Deutsch Bank told the judge that the secured creditors hold 60 percent of the bank debt. These creditors back the reorganization plan.
The judge found that the committee of creditors didn’t have “a significant role” in drawing up the bankruptcy plan. Attorneys for the creditors said they weren’t consulted on the division of assets and the price in the auction.
Mentioned as potential bidders are Boyd Gaming Corp, Ameristar Casinos, Penn National Gaming, Cannery Casino Resorts and the Palms.
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Will someone please build something on the 215 and Durango Drive lot? We have been waiting for years out here in the southwest!
CommentWatch.. If that's your biggest problem i have a good psychiatrist for you! I hope Boyd Gaming doesn't buy some properties. They can't even manage their own (SUNCOAST, COAST, MAIN ST, ORLEANS) Palms would make a good addition with the Maloof Bros operating it.
Don't worry, Harrah's will swoop in and snatch everything up. Then we won't even be able to escape them in the locals market.
chazbean-I second your motion. Boyd already ruined the Coast properties! Where are you Mr. Gaughan? Hope you and your partners are interested. You can buy them and turn them into gold mines for Boyd to buy years later (and eventually run in the gutter).
From one monopoly to another.
i agree about michael gaughan buying these local spots. worked for mike back in late 70's when barbary coast was opened, enjoyed every minute i worked there. we did stay at orleans last fall after years of being stations regulars. slots we're better, room was nice, employee's were so-so. enjoy the holiday but remember why we celebrate the day
whats up with someone selling on this comment section -s/b removed nothing to do with topic.
think boyd is a good bet - he is still kicking himself about the stardust...
formervegas76 --Possibly your "so-so" experience with Orleans employees is because many are former Stardust workers. They were supposed to move to Echelon but you know the rest.....
I don't think Harrah's will buy any of these properties. They know if they tried to pull their nonsense, like they do on the Strip, not one local would set foot in the place. Harrah's is perfectly happy ripping of Strip tourists with their 6/5 blackjack and tight machines.
Boyd Gaming concerns me also. They do not need to add to their resume of smoke filled, stinky, low roller properties. God help us all if they buy a few of these places. Just what we need, more places like Sam's Town.
If Michael Gaughan gets involved and picks up a place then we can except more of the same just like the South Point AKA "Sweat Point." South Point is one of the most hostile places to AP blackjack players I have ever seen. Even a small bet spread ($10 to $60)causes a meltdown in their pit. Talk about paranoia...
Check out my blog about Las Vegas:
http://jimmyhoofa-lv.blogspot.com/
Talk about a "junk shot" !!!
$722 million for 11 crappy casinos, including the two Fiestas, Texas Station and Santa Fe Station, plus the buyer has to pay Mama Fertitta $75 Million for her land under Texas Station.
If I were Boyd and Harrah's, I'd keep my money in my pocket.
The minimum outlay must be $722+$17.5+$75=$814.5 million for 11 crappy casinos. Four of the properties are along a short stretch of Rancho Rd. and already represent overcapacity. Boyd offered $950 million for many more properties last February.
===========
George Maloof owned two of these properties (Fiesta Casinos) and sold them to the Fertitta brothers in 2000 to finance the Palms. Why would he buy them back?
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How does the judge figure that this is an adequate floor? It is quite possible that no one will bid.
How does the judge figure that this is an adequate floor? It is quite possible that no one will bid.
That's exactly what the fertittas want. They want to buy their properties, pennies on the dollar and get back to fleecing their lowlife customers. They don't want competitive bids so they involved a crony in Zive to grant them favorite status. I wonder when and where their stars met?
Suncoast WAS good..stayed there many times..but hey, I have a business I owe a million on and would love to tank it, wipe the debt - not get hurt by it and then buy it back for $100k..where do I sign up for it??
Can't we all agree that all Casino owners and operators are crooks and/or scumbags?
I live near Fiesta. Everytime I go there the place is empty except of rollers with O2 tanks and the usual chain smokers. Maybe Fiesta needs to be imploded and just removed from the equation? It's on an island all by itself out there with not much going on around it.
I got tossed last week from their blackjack pit for ramping my bet from $25 to $125. Come on now. 5 to 1 spread gets you walked at this sawdust joint?
Check out my blog:
http://jimmyhoofa-lv.blogspot.com/
Boyd Gaming is as low-class as you can go! My wife and I laughed the other day when we saw a promotion that you could win beer for a year at their properties! We wanted to jump out of the house and go win it. Seriously, that's the kind of customers they cater to. They don't need to ruin any other places. Break up those properties and bring in some new faces. Boyd, Harrahs, Stations have enough on thier plate.
Now I agree with Mr. Gaughan getting involved. He'll treat you right (both employee and customer). Just wish his place wasn't so far out.
To PICKONE..... Southpoint is a nice place to eat, drink,and see some shows. As for gambling they have the tightest slots in Las Vegas. The few times I have been there I saw few winners. As for blackjack the pit boss has an orgasm if u win a decent amount(1000) Do not go there to gamble!!
Will someone please just build anything out there so my brothers and I can go back to work..
chazbean...tight slots are everywhere when you don't win! It's timing....be there at the right time and you're a winner. Orleans, Gold Coast use to be good for me and my company when owned by Gaughan, but not good for me or my company since Boyd took over. My timing is never right there. We rarely go there or Stations.
"Will someone please just build anything out there so my brothers and I can go back to work.."
Are you trained for demolition work? That's coming soon. :)
Granted, Boyd casinos are not the sexiest casinos in the valley, but they certainly are consistent. Boyd is a great contributor to the community and does well by both its employees and customers. It should be interesting to see what they do here, but make no mistake about it, they would be a fine alternative to Station owning and operating these assets.
If Boyd wants to buy these troubled assets, they should also sell their own (Echelon).
Arguably the number one land opportunity that is not on The Strip!
http://www.loopnet.com/Listing/15062474/...
Durango-Drive-Las-Vegas-NV/
Greed always Loses!!!!!!!!!!!!!
Boyd should spend his $$$$ to finish the Echelon and then name it "Stardust".