Station casinos continue kicking as they receive another extension.
Author: Chris // Category: Las Vegas Casinos
Station casinos has been under great fire lately and it has filed for bankruptcy after struggling through this difficult economy. In the past year they have struggled and put off the bankruptcy court dates in an attempt to rebuild the business and salvage what is left of the company. Now, most recently they have been allowed a temporary extension which will give them the opportunity to create a restructuring plan to pay off some of the lease creditors.
According to the current Chapter 11 rules, Station casinos should have filed for bankruptcy within this month and have taken advantage of out 120 day window in which to submit a plan. If the casino does not fall within the 120 day window, the plan submission will be open to the court for open season for any type of reorganization plan.
At this time, Boyd gaming Corporation, one of the largest gambling organizations have attempted to pay off the $950 million in order to obtain all of the station casino assets. The judge did not know why Boyd gaming was participating in this restructuring plan and did not allow them into the court date when they agreed on the extension.
Bankruptcy Judge Gregg Zive will reside over the case as of December 7 when he will hear arguments about the future plan for Station casinos. Right now Station casinos has to deal with lowering a $250 million annual lease payment as part of the restructuring plan.
In 2007, Station casinos produced a buyout plan that would lease out all four of their casinos, the red rock resort, Sunset Station, Palace Station in Boulder Station for $250 million a year. As the economy continued to fold the $250 million payments were used to bring down their debt and try to return any excess money to their parent company. Boyd gaming will continue to be on the prowl for Station casinos assets as they face their December 7 and December 11 hearing.
