Station Casinos bankruptcy reorganization is taking place and it’s what most should have expected. They’re going to sell off some assets to cover their debt.
Station Casinos Inc. filed a reorganization plan in its bankruptcy case Wednesday proposing the sale of its interests in certain land holdings and 13 of its 18 gaming properties.
…The plan, if approved, would lead to the sale of the remaining company assets.
The assets include Indian casino management contracts as well as Texas Station, Santa Fe Station, Fiesta Rancho, Fiesta Henderson, Wildfire Rancho, Wildfire Boulder, the Gold Rush, Lake Mead Casino and the company’s 50 percent interest in Green Valley Ranch Resort, Aliante Station and the smaller Barley’s, the Greens and Wildfire Lanes.
The founding family of Station Casinos, The Farittas’, will still maintain management and a 50% share of the following 5 properties.
Court records show the Fertittas and Colony Capital would pay $85.6 million for a 50 percent stake in the new company holding Red Rock, Palace Station, Boulder Station, Sunset Station, the Wild Wild West and certain land holdings — and that company would assume $1.6 billion in mortgage debt. The Fertittas would manage these five properties.
The properties that are up for sale aren’t very exciting, but would allow a new company the ability to enter the Las Vegas marketplace or allow an existing company the ability to easily grow.
It’s interesting that the Ferritas family would be able to regain some control over the properties that seem to make money. It will be interesting to see how the new company and properties are marketed when the dust settles.
Las Vegas Sun has much more info on the specifics of the deal.