Station Casinos Bankruptcy Saga Continues

November 27, 2009

Steven Church of Bloomberg reports on the latest developments regarding the Station Casinos bankruptcy process, which has been unfolding over the last several months.

Station Casinos Inc. doesn’t need an examiner to investigate how the company is handling its bankruptcy, the judge overseeing the case said, rejecting part of the takeover strategy pursued by Boyd Gaming Corp.

U.S. Bankruptcy Judge Gregg Zive said at a hearing in Reno, Nevada, that Boyd and other advocates of an examiner appeared to really want a trustee to take control of the company’s bankruptcy case, especially with regard to any potential sale. Zive delayed until Dec. 11 a decision on a related request to end the exclusive right of Station managers to propose a plan to reorganize the Las Vegas-based gambling company.

Payout Perspective:

Station Casinos, owned and founded by the Fertitta family, has been working with creditors since February to restructure nearly $6.5 billion in debt. But in July the corporation filed for bankruptcy.

Now, the Fertittas are fighting to retain exclusive control over the company, and prevent third parties – like Boyd Gaming or other creditors – from establishing competing reorganization bids. We’ll know in the coming weeks whether they’re successful.

There have been rumours in recent months that if things continue to go south at Station, Frank Fertitta III could follow in Lorenzo’s footsteps and join Zuffa in some capacity.

7 Responses to “Station Casinos Bankruptcy Saga Continues”

  1. Peter Griffith on November 27th, 2009 6:13 PM

    Hopefully (and bear in mind that I actively cheer of Zuffa to fail) the Fertitta Curse that has taken down Station will have a similar effect on their MMA interests. I’m ready for new ownership of the UFC.

    Happy Holidays everyone!

  2. ned flanders on November 27th, 2009 6:21 PM

    Well, the japanese mob eventually had to get out of MMA, let’s hope the italian mobsters get out of the american MMA scene.

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  4. shawn on November 29th, 2009 11:37 AM

    I have wondered why the UFC does not hold thier major fights at a Casino owned by Zuffa?………..it would draw thousands of people throught that Casino and hundreds of thousands would be spent during the day and evening of each event. Never mind the rooms would be filled and the on site resurants would be full.

    Since Zuffa (UFC) is own by the Feritta’s the the other bondholders and shareholders would see that the Ferittas are doing more for Station Casinos then just taking a check. They could include a MMA training center right on site that could have a viewing area that would attract fans would then could take the time to spend money in the differant stores and on the Casino floor.

    Even though most of the larger Station Casinos are off the strip it would be nothing for fans to travel 10 or 15 min to an off strip location.

    I have never heard a reason for them not to hold events at thier own properties, but if I was a shareholder of Station Casinos I would want to see” the powers that be ” bring they big asset to the table, Cash will not save those casinos it will be full rooms and players on the casino floor……………

    Bring the UFC home……this will save the house!

  5. Rich Bergeron on December 7th, 2009 11:16 AM

    For the record, Frank Fertitta Jr. is dead.

    Frank Fertitta III, AKA “Frankie Three Sticks” was thrust into the casino business when his father was in a crisis in the early 90s. Frank III took over the operation due to his father’s past suspected casino skimming caught up with him. Frank was the first-born son, traditionally the one that gets the best “family” racket. Don’t count on him giving it up so easily. Unlike his younger brother, Frank has always seemed to enjoy the casino role and work harder at it than most. It’s in his blood, literally, so he won’t leave the casino business.

  6. Kelsey Philpott on December 7th, 2009 1:51 PM

    Thanks for the correction, Rich.

    Kelsey

  7. Rich Bergeron on December 8th, 2009 10:47 AM

    No problem Kelsey,

    To clarify my comment, I just wanted to point out that the casinos will not be abandoned by Frank, though I don’t rule out him taking a more active role in Zuffa to maybe squeeze some more money out of it for the family during the Station’s BK crisis. There’s just no way he’ll turn his back on his Dad’s empire or leave it to someone else, unless of course the bankruptcy drama leads to him being forced out. Lorenzo and Dana are tighter friends, and though Frank III dabbles in jiu jitsu he’s more of an oversight type of owner of the UFC than a get his hands dirty type. His business training must have come in handy while Zuffa was getting their big loans ($500 million in total now), and of course Frank III played some kind of role in acquiring PRIDE. Lorenzo is the guy who really loves the sport, was on the Nevada Athletic Commission at one point, and was the best fit to assist Dana in worldwide expansion of the brand. I don’t think Frank III is willing to put all his chips on the table with the UFC alone. He and his family are used to spending much more money than the UFC could possibly garner them.

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