Station Casinos Seeks Restructuring

February 5, 2009

The Las Vegas Sun reports that the Fetitta’s and Colony Capital, owners of Station Casinos, have sought a reworking of their debt, which includes filing for bankruptcy, in order to better weather the economic storm tha thas affected the Las Vegas casino industry:

Under the plan, known as a prepackaged bankruptcy, Station’s parent company would file for Chapter 11 bankruptcy protection in court under a plan prepared in cooperation with lenders. Bondholders would vote on the plan before the bankruptcy filing, expediting the process.

The company could emerge from bankruptcy by summer.

The plan, which has received the support of senior lenders, would allow the company to continue operating as normal by requiring Station executives Frank and Lorenzo Fertitta and private equity partner Colony Capital to put up $244 million in cash.

The plan being hatched in coordination with the senior lenders to Station bodes well for the plan being accepted. Staion has been hit hard bu the Vegas downturn harde than others due to its’ core business in the locals market. Though these are touch econimice times for Station, the article does note that the company hasn’t sold any properties or shelved opportunities for new casinos already in the planning stages.

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