Station Casinos Gets Fourth Extension on Restructuring

June 2, 2009

The Las Vegas Review Journal reports today that Station Casinos has received yet another extension to their restructuring plans, allowing to company to avoid a bankruptcy filing for now:

“We don’t know why, yet,” Rapoport, said in response to a question about why Station Casinos’ lenders would agree to another extension. “Four forbearance agreements in a row is awfully nice. Banks are not in business to be nice. They’re also not in business to be mean. They’re in business to make money.”

Rapoport said Station Casinos’ creditors could still be negotiating about which lenders will have priority in a bankruptcy case, she said.

“I wonder how secured any of these banks really are,” Rapoport, a law professor at the Boyd School of Law at the University of Nevada, Las Vegas, said.

“They’re sort of signaling they don’t want to stand on their rights in the bankruptcy,” she also said.

Creditors could also be concerned about how much Station’s assets have been devalued during the recession, leaving the company without strong collateral, she said.

Or, she said, Station could quietly be trying to cut a deal with a buyer to sell some of its assets.

These newest extensions are interesting in that they are for a much shorter time period, keeping Station Casinos on a much shorter leash while in negotiations with debtholders. While there is a clear firewall between the Zuffa-held UFC and Station Casinos, there share a common lineage owing to Lorenzo and Frank Fertitta.

Got something to say?

You must be logged in to post a comment.