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MORE NEWS!
MAY 2010: Locals casino investors show interest in Station Casino assets Hearings could be pivotal in Station case
APRIL 2010
Station Casinos
loses $1.13 Billion in 4th quarter of 2009. Read the story
MARCH 2010
Station Casinos
breakup proposed; Fertitta brothers would acquire stake in four casinos, with 14 others sold! Read the story
FEBRUARY 2010
NV - VEGAS FAMILIES FACE OFF IN BANKRUPTCY GRUDGE MATCH Green Valley Ranch Casino, co-owned by Station Casinos and the Greenspun family, went belly up last week. Now the Greenspan's have accused Station Casinos of siphoning off high-rollers, and sending them to Station's wholly-owned
casinos. But before the Greenspan family could even talk with Station - well, read this story of greed and deceit.
NOVEMBER 2009: BOYD MAKES ANOTHER MOVE TO GET STATION CASINOS ASSETS: "...The most likely scenario from a potential Boyd plan would be the acquisition of all or part of Station
Casinos, which operates 18 properties in Las Vegas, Henderson and North Las Vegas...Boyd Gaming Chief Executive Officer Keith
Smith said...'"Let me be clear. This is a serious offer...Bankruptcy can be a distracting and expensive process, and
it does not appear to be in the best interests of anyone for this to drag on.'" Read Boyd's Court Motion - Click Here (Large PDF file - not recommended for slow connections)
SEPTEMBER 2009: Judge grants request of Station Casinos creditors to probe 2007 deal: "A federal bankruptcy judge has granted a request by creditors of Station Casinos Inc.,
allowing them to hire a private attorney to look into possible fraud or wrongful procedures in the deal that took the company
private in 2007. But U.S. Bankruptcy Judge Gregg Zive made it clear he doesn't want a duplication of a study already
completed that found everything was above board in the deal." Station Casinos opposes creditors' request to probe 2007 deal: "On the eve of a hearing in Reno in its bankruptcy case, a dispute emerged Tuesday on whether creditors can
extensively investigate the 2007 deal that took Station Casinos Inc. of Las Vegas private...Even the Special Litigation Committee concluded the deal resulted in Station Casinos and its subsidiaries not receiving "reasonably equivalent value"
as measured against the transaction."
August 2009: Creditors probe deal that took Station private By Steve Green THe Las Vegas Sun, Thursday,
Aug. 27, 2009 | 2:42 p.m. " A group of creditors in the Station Casinos Inc. bankruptcy
case revealed Wednesday it's investigating the 2007 deal in which the Las Vegas company was taken private -- a deal the creditors
say involved questionable terms that now threaten recovery of funds by the creditors." Law Firms Double Down in Station Casinos Bankruptcy, posted by Brian Baxter, American Law, August 25. 2009 7:20 p.m. "Recent court filings show that Milbank billed Station for $12.8 million in fees in the 12 months prior to
the company's bankruptcy filing. Roughly $4.9 million of that amount was for restructuring advice, $6.8 million for general
legal services, and a $1 million retainer was paid to the firm in February for prepetition bankruptcy work. Partners are billing
between $740 and 995 per hour, counsel between $700 and $905, and associates at hourly rates ranging from $285 to $685." Station’s legal battle heats up in bankruptcy case , By Steve Green, The Las Vegas Sun, Monday,
Aug. 24, 2009 | 5:22 p.m."Station Casinos Inc.'s lenders continue to fight amongst themselves and Station is seeking
court approval to pay for more attorneys to deal with threatened litigation associated with its bankruptcy case. While
Station has expressed hope for a speedy resolution to its bankruptcy case, court papers filed Friday show the case is becoming
increasingly complex and contentious as the company, lenders and other creditors assert arguments in the restructuring process." Analyst: LV keeps spot at top of list of distressed properties, By Brian Wargo, In Business reporter Fri, Aug 21, 2009 (3 a.m.) ""The number of commercial properties
facing foreclosure tapered off over the summer, but that hasn't prevented Las Vegas from holding onto its No. 1 ranking for
distressed buildings and development. In its August report that tracks the market through the end of June, New York-based
Real Capital Analytics said Las Vegas had 168 troubled assets valued at $9.2 billion. That is down from $9.4 billion in its
July report and $9.7 billion in its June report. The Chapter 11 bankruptcy filing by Station Casinos in July will be
a new factor to consider, Ruderman said. That will push the number of distressed properties past $15 billion with $6.5 billion
attributed to Station, she said." Lehman sues AIG for $9 million in CDS payments , Reuters, Wed Aug 12, 2009 4:30pm EDT ""NEW YORK (Reuters) - Lehman Brothers Holdings Inc (LEHMQ.PK) is suing American International Group (AIG.N) for $9 million in payments the bank says it is owed from credit default swap protection it bought from the
insurer on companies including General Motors and Washington Mutual. Lehman bought protection from AIG on AbitibiBowater
(ABWTQ.PK), Washington Mutual (WAMUQ.PK) and General Motors Corp GM.UL, all of which have filed for bankruptcy. Payments on another contract, Station
Casinos STN.UL, were triggered when the casino operator failed to make an interest payment on its debt."
Bankruptcy imperils Madera County casino (one of Station
Casinos' three CA tribal casino projects) Aug. 1 - "A nationally known gambling expert said last week's bankruptcy
filing by Station Casinos could hamper efforts by the North Fork Rancheria of Mono Indians to build a Madera County casino...
The company, however, will need permission from the bankruptcy
judge to "do anything -- which puts a clamp on Station," said Bill Eadington, an economics professor and director
of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada in Reno. Money
also will have to be allocated to sustain the Madera project, he added. "While in bankruptcy,
it is very difficult to allocate funds for speculative ventures -- and this would probably fall under that," Eadington
said. The current credit crunch and lingering recession add to the challenge, not only for Station,
but other high-profile gaming companies, as well.
Lenders battling in Station Casinos bankruptcy case "July
30 - The bankruptcy of Station Casinos Inc. has revealed that the Las Vegas company's banks are fighting amongst themselves
as different groups of lenders move to protect their positions in the company's $6.4 billion of debt. "In
advance of a hearing today in Reno on Station's initial plans to use cash during the bankruptcy process, a group of 12 lenders
filed an objection. "They are Bank of Hawaii, Bank of Nevada, BNP Paribas, First Tennessee
Bank, General Electric Capital Corp., Genesis CLO, Natixis, Castlerigg Master Investments Ltd., Trust Company of the West,
the Bank of Nova Scotia, Union Bank and U.S. Bank. Those banks say they hold nearly 30 percent of Station's senior secured
debt... "The Independent Lenders complain specifically that: "--Station
proposes to transfer tens of millions of dollars to non-debtor affiliates, including to an entity to pay interest on property
loans. "--Proposed budget items are "grossly inappropriate and unexplained'' including
more than $31 million for professional fees over 13 weeks, $30 million for "Native Gaming Deals'' and $22 million in
capital expenditures over 13 weeks...." Read the story
in its entirety at the Las Vegas Sun
JUNE 2009 UPDATE: June 22: Station Casinos get fourth extension on debt plan "Station Casinos Inc. is still
negotiating a restructuring plan with bondholders and has extended its deadline for deciding on the plan to next month, the
company said Monday. The Las Vegas-based private casino operator said in a filing with the Securities and Exchange Commission
that its new deadline is July 17." MAY 2009
UPDATE: May 30: Station Casinos gets more time for restructuring Station Casinos says it has received a third extension from bondholders, allowing it to continue negotiating a restructuring
plan and put off a bankruptcy filing. Company spokeswoman Lori Nelson did not discuss the duration or the terms of the
extension. The previous extension, which ended Friday, was two weeks. (Is this a sign that the lenders are losing
patience as the company " (Wrestles) with more than $5 billion of debt and weak cash flow...."? May
29: Station
Casinos Expects Debt Extension Wall Street Journal - USA By TAMARA AUDI
Station Casinos Inc. says it expects its lenders to extend a forbearance agreement while the parties continue
to work out a prepackaged bankruptcy (again!!) May 15: Station Casinos expects extension from lenders to negotiate bankruptcy Station Casinos has asked for another extension from its creditors. It has now defaulted on a $250 million
real estate loan for a Nevada property. This, plus missing three interest payments in a row have helped the company
narrow its losses in the first quarter. Must be nice to be able to miss payments and default on loans at will....
APRIL 2009 UPDATE: Debt-Laden Station Casinos puts land up for sale: No, not the Rohnert Park site, but quite a few parcels in numerous locations.
Station Casinos gets extended 30 day lender reprieve: Once again, they've put off the bondholder vote! It's because the bondholders don't like the deal!
Station Casinos reports widening loss in fourth quarter from The Las Vegas Sun, by Liz Benston, March 31, 2009: "Losses
widened for Station Casinos in the fourth quarter of last year as the company reported net losses at its major Las Vegas casinos.
Station today reported a net loss of $3.2 billion in the fourth quarter compared with a loss of $437.4 million for the same
period a year ago." (Note: the company began losing money when Las Vegas' housing and populaiton boom began
to slow down in 2007) Station Casinos CDS worth 32 percent in auction (AFX UK Focus) 2009-03-31 19:39: "Credit default
swaps insuring the debt of Station Casinos Inc were found to be worth 32 percent of the amount of debt they insure in an auction
on Tuesday to determine the contracts' value, said auction administrators Creditex and Markit. That means that sellers
of protection will need to pay out 68 percent of the value of the bonds they insured, or $6.8 million per $10 million of insurance
sold. Credit default swaps are used to insure against a borrower defaulting. Payments on the contracts were triggered
after the casino operator failed to make an interest payment on its bonds within 30 days of missing the payment on Feb. 1.
Net volumes of around $242 million are outstanding in Station Casinos' credit default swaps, according to data by the
Depository Trust & Clearing Corp."
MARCH 2009 UPDATE: STATION
CASINOS: still hurtin' for certain
From The Wall Street Journal: Station Casinos sets bankruptcy date, objects to injunction request: Station Casinos Inc. plans to file for bankruptcy
protection on or before April 15, the casino operator said in a response to a request for an injunction against a possible
filing...The news comes a day after Station Casinos said it elected not to make a scheduled $9.9 million interest payment
that was due Sunday, the latest payment put off by the company...Station Casinos said Wednesday it opposed a motion brought
against it by a bondholder seeking an injunction aimed at halting its efforts to restructure more than $5 billion in debt,
largely assumed by the company's leveraged buyout in 2007.
From KVBC: Lawsuit complicates Station Casinos reorganization plans: For weeks, Station's management has been negotiating
a restructuring deal with Station shareholders, trying to avoid bankruptcy. "The amount of money that they are bringing
in is not enough to make their interest payments," Budin continues. "So, think of somebody being behind in their
credit cards. They call their credit card company to pay a lower amount up front then to pay more later." Most of those
bondholders are large corporations along with wealthy individuals. Last month, one of the bondholders filed for an injunction,
citing that he wasn't being treated fairly in the negotiations. "If the injunction prohibits the company from talking
to its lenders, it's going to restrict the options it has available," said Budin.
From The Wall Street Journal: Station Casinos didn't make $9.9 million interest payment on notes: Station Casinos Inc. said Tuesday (March 17) that
it elected not to make a scheduled $9.9 million interest payment that was due Sunday to holders of its $300 million in 6-5/8%
senior subordinated notes ...
From MSNBC: Bankruptcy one of three options for Station Casinos: April 10 is the deadline for investors to vote on whether they
will go along with a plan that would give them drastically reduced payouts rather than let the matter be decided in bankruptcy
court. There's been talk that Station Casinos may be better off selling some of its casinos, but the company rejected
a recent buy-out offer from Boyd Gaming.
From BlackBook Magazine: Station Casinos (Green Valley Ranch, Red Rock, Aliante, Boulder Station, etc.) is scrambling to renegotiate with bondholders
as the clock ticks toward an April 15 bankruptcy filing deadline. Boyd Gaming offered to buy most of Station's properties,
but Station's Fertitta family rejected them. Boyd persists, meaning we may have a good, old-fashioned casino family war
between the Boyds and the Feritttas. Station's plans for a luxe Strip property-Viva-have died quietly.
From APP.com
http://www.app.com/article/20090320/BUSINESS/90320078/1003 Slot machine maker goes bankrupt, will liquidate: Progressive Gaming
International Corp., formerly the world's largest slot-machine maker, filed for bankruptcy court protection to liquidate.
The petition for Chapter 7 bankruptcy in Las Vegas, filed March 16, listed assets of $263,600 and debt of $5.6 million. The
company, which formerly did business as Mikohn Gaming Corp., sold most of its assets to International Game Technology on Jan.
20 for $16.2 million. As of Sept. 30,
From CNBC.com: UFC owners struggling in Vegas: ...the Fertitta brothers, who own in between 20 and 25 percent of Station, own
90 percent of the UFC... the declining fortunes of Station could affect the way UFC is run. Last year, the brothers were at
No. 897 on the Forbes Billionaire list, each having a net worth of $1.3 billion. This year, like many, the Fertittas are no
longer on the list.
STATION CASINOS FACING LAWSUIT FROM BONDHOLDER, MISSES SECOND INTEREST PAYMENT FOR FEBRUARY: A lawsuit against Station Casinos' prepackaged bankruptcy plan could tie the matter up in the courts
long enough to miss the March 2 bondholder vote deadline. That would force Station Casinos into a bankruptcy proceeding that
they could not control as currently planned.
STATION CASINOS ON VERGE OF DEFAULT: Bloomberg.com reports that as of January 30, 2009, Station
Casinos most likely breached debt covenants, and is headed for bankruptcy. Click the Headline for the story. KA-BOOM! "Private-equity firms ( like Colony Capitol, majority owner of Station Casinos) potentially face
a wipeout of their investments in a range of companies, including Harrah's, Clear Channel Communications, Hilton Hotels,
Freescale Semiconductor, Realogy, Station Casinos..." GAMING DOWN, CASINO DEBT CLIMBING: Seven gaming companies defaulted on more than $13 billion of high yield principal in 2008 due to
heavy debt loads, a difficult credit market and strained liquidity, Fitch said. Station Casinos may soon join that group
as it is on the cusp of defaulting on an additional $2.3 billion after its failed debt exchange offer in December. |
