|By Arnold M. Knightly, Las Vegas
Review-JournalMcClatchy-Tribune Regional News
April 19, 2010 --Station Casinos' owners and some of its lenders plan to submit a $772 million bid to acquire a majority of the gaming company's assets in bankruptcy court through a newly formed company, according to a release by the gaming company today.
Station Casinos said this morning it has reached an agreement with the committee representing 60 percent of the company's OpCo secured debt to support the proposal to buy properties, including Santa Fe Station, Texas Station, both the Fiestas, and Native American projects.
The plan would require approval of the federal bankruptcy court in Reno.
The plan calls for the newly formed Fertitta Gaming, real estate firm Colony Capital from Los Angeles and banks Deutsche Bank and JP Morgan Chase to make a "stalking horse" bid for the properties.
The announcement comes less than a month after Station Casinos proposed a reorganization plan that included the sale of 13 casinos, land holdings and Indian gaming contracts as one entity.
Station Casinos also proposed spinning off five of its larger properties into a new holding company that would be owned by both banks, Fertitta Gaming and Colony Capital of Los Angeles.
The five properties were Red Rock Resort, Sunset Station, Boulder Station, Palace Station and Wild Wild West.
In both deals, Fertitta Gaming would operate the casinos under long-term management contracts that would pay the company 2 percent of the properties' revenues and 5 percent of the properties' cash flow.
Station Casinos said today that both plans have the support of holders of 90 percent of the company's secured debt, which is $3.1 billion of the company's nearly $6 billion in long-term debt.
A hearing on the joint plan is scheduled for May 4 in Reno.
Station Casinos Chairman and Chief Executive Officer Frank Fertitta III said in a statement the company was pleased to have reached the agreement on the possible sale of the majority of the company's assets.
"This agreement is another important step toward maximizing the value of all of the Station Casinos' properties for the benefit of our team members, guests, lenders and the Las Vegas community," Fertitta said.
Contact reporter Arnold M. Knightly at email@example.com or 702-477-3893.
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