Twists and turns, thrills and spills, ups and downs! That might be the best way to describe the bankruptcy case that Station Casinos has been going through. The case has been in and out of court and has become highly publicized and hotly debated. Station Casinos is trying to reorganize their efforts to keep the casino and casino resort properties. The founding family has created a new company, Fertitta Gaming and together with real estate investor Colony Capital and two of Station Casinos’ lenders, JP Morgan and Deutsche Bank want to retain control of Station Casinos’ four largest properties. These properties are Boulder Station, Palace Station, Red Rock Resort, and Sunset Station. They are also trying to keep the Wild Wild West Casino in their grips. The rest of their properties would be sold off in a U.S. Bankruptcy Court auction.

Some of Station Casinos’ lenders, mainly unsecured creditors, feel that the plan is unfair. They are particularly opposed to Station Casinos’ wish to sell the remaining properties as one entity. The creditors feel they will be able to get bigger bids and make more money if the properties are sold separately. This dispute has made its way into the courts and onto the headlines. “We’ve been at hand-to-hand combat on this since December,’ said Deutsche Bank Attorney, Sandy Qusba. He continued, “If this deal is blown up, we’ll be mired in litigation.”

Fertitta Gaming, Colony Capital, and the lenders are also trying to make themselves the “stalking horse” bidder for the remaining eleven properties. A stalking horse bidder basically starts the bidding process. In this case it will allow the Station Casinos group to keep itself from being undersold. The unsecured debtors are claiming this bid is a “poison pill.” The $75 million stalking horse bid could keep potential bidders from entering the process. There are also legal considerations to be contended with as Station Casinos’ Founder, Frank Fertitta Jr’s., widow, Victoria owns some of the land. Some also claim that if the Fertitta Gaming Group wins the bid they will have to pay nothing for the new casinos.

Tags: casino, gambling, online