Station Casinos reaches deal with key lenders
Station Casinos Inc. today announced it has reached an agreement with key lenders that the company hopes will clear the…
Station Casinos Inc. today announced it has reached an agreement with key lenders that the company hopes will clear the way for it to receive approval to emerge from bankruptcy this summer. The arrangement with lenders holding $2.475 billion of debt secured by four of Station’s most valuable hotel-casinos is expected to result in the lenders swapping some debt for equity in the company.
The deal — if approved — would keep the company and its 18 casino properties and extensive land holdings together. It’s expected members of the founding Fertitta family, along with Station majority owner Colony Capital of Los Angeles, would maintain equity stakes.
The Fertittas would make a substantial, but undisclosed, equity investment and the current management team led by Chairman and Chief Executive Frank Fertitta III would continue to lead the company.
Station, which filed for bankruptcy reorganization July 28 after the recession reduced revenue and made it impossible to meet its debt obligations, last reported total debt and liabilities of $7.5 billion.
With today’s announcement, Station signaled it’s still not interested in entertaining any buyout offers from competitor Boyd Gaming Corp.