Boyd withdraws objection to Station bidding procedures
Boyd Gaming Corp. on Wednesday withdrew its objection to Station Casinos' proposed bidding procedures, less than two days after the company said the auction plan was going to be the "focus of our efforts" in bankruptcy hearings.
Boyd Gaming declined comment on pulling the objection but stated the company is still interested in acquiring some or all of Station Casinos' assets.
The objection was the last of three objections made and subsequently withdrawn by Boyd regarding the proposed sale of the bankrupt company.
On Monday, Boyd withdrew objections in U.S. Bankruptcy Court in Reno to Station Casinos' master lease compromise and exclusivity motions.
Station Casinos' plans for restructuring the company are scheduled to be heard during a two-day hearing that begins Tuesday in Reno. Also to be heard is the official committee of unsecured creditors' outstanding objections to parts of Station Casinos' reorganization plan, many of which paralleled Boyd's objections.
Last week, the unsecured creditors filed an objection calling Station Casinos' proposals "the latest component of an overall scheme to ensure that the Fertittas retain control of the Station enterprise, at as low a valuation as they can get away with" without any recovery of the nearly $2.5 billion in unsecured debt to creditors.
Station Casinos hopes to complete the sale of a majority of the company's assets by the end of July. If that happens, the judge could approve any sale and restructuring of Station by the end of the year.
Members of Station Casinos' founding family said they will pursue a $772 million stalking-horse or preliminary bid for many of the company's properties through the newly formed Fertitta Gaming.
The bid would be in partnership with Los Angeles-based real estate investment firm Colony Capital and lead banks in the bankruptcy, Deutsche Bank and JP Morgan Chase.
The deal calls for $317 million in cash and $455 million in new credit, but how much each party would contribute and own has not been disclosed.
The gaming company also wants to spin off five of Station's largest properties -- Red Rock Resort, Sunset Station, Boulder Station, Palace Station and Wild Wild West -- as well as some land holdings into a holding company that the partners would own.
In court on Monday, U.S. Bankruptcy Judge Gregg Zive told Boyd it was not entitled to discovery and documents concerning the planned management of Station Casinos' properties and the company's request to extend the exclusivity of the reorganization plan until July.
Contact reporter Arnold M. Knightly at
aknightly@reviewjournal.com or 702-477-3893.
