The saga that has been the Station Casinos bankruptcy proceedings took its first step toward reaching a conclusion this week. For the past several months Station Casino operators, their lenders, and the U.S. Bankruptcy Court have been locked in negotiations and hearings. Sometimes they have not been too friendly. Station Casinos is doing its best to keep a hold of its best properties with newly formed Fertitta gaming which comprises of Station Casinos’ founding family the Fertittas. The Fertittas and their creditors have been at odds over whether the remaining properties should be auctioned as one entity or individually. Of
However, as said before, all sides made a huge step forward that could help Station Casinos move into their restructuring phase, a time that is badly needed. The U.S. Bankruptcy Court in Reno and presiding judge Gregg Zive approved measures that could allow for Station Casinos lenders to vote on the restructuring plan by the end of August. In a nice contrast to his harsh remarks in the past, Judge Zive praised all sides for coming to an agreement. “For the most part, the parties were able to arrive at consensual resolution as to what should be disclosed and how it should be disclosed. I commend the parties for that and I think that’s how the process is intended to work.” The hearing was set to last two days but only took a few hours.
Station Casinos must release a disclosure statement. This statement is to allow the lenders to evaluate where the company stands, and what would be the best restructuring plan. Should there be any objections to the reorganization plan, they are due by August 12. Replies to the objections are due August 20. The disclosure statement will be updated after the companies auction. This will be when creditors will fully understand what should be expected.
