Station Casinos affiliates file bankruptcy reorganization petitions
April 13, 2011 - 10:52 am
Station Casinos Inc. affiliates including Fiesta Station Inc., as expected filed prepackaged bankruptcy reorganization petitions as part of the parent company’s reorganization plan.
Fiesta Station listed assets of about $500 million and debt of more than
$1 billion in a Chapter 11 petition filed Tuesday in U.S. Bankruptcy Court in Reno.
Besides the bankruptcy filing, the Las Vegas-based company moved for joint administration of the cases with Station Casinos’ main case already in bankruptcy court in Reno.
Station Casinos also asked for court orders allowing their subsidiaries to continue paying vendors and employees and continue to pay gaming liabilities at their casinos.
With its filings, the company submitted a consolidated list of creditors holding the 40 largest claims against its subsidiaries. The Nevada Gaming Commission topped the list at $5.09 million.
Fertitta Enterprises was second at $2.95 million followed by International Game Technology at $1.45 million.
The subsidiaries owe the Nevada Department of Taxation $1.21 million and the Internal Revenue Service
Green Valley Ranch Gaming LLC and 25 other related subsidiaries and ventures also sought bankruptcy protection. The bankruptcy filings were a procedural step needed to complete the company’s overall restructuring as it prepares to exit bankruptcy protection this year.
Green Valley Ranch Resort was acquired for $500 million by a joint venture led by the Fertitta family, the Las Vegas-based company announced last month. At the time of the restructuring, Green Valley Ranch’s debt was about $600 million.
On Wednesday, Moody’s Investors Service withdrew all of its credit ratings of Green Valley Ranch Gaming, affecting some $773 million of debt securities due in 2014.
Aliante Station in North Las Vegas is being taken over by creditors — TPG Capital and Apollo Global Management LLC — and will be managed by a Fertitta company.
The restructuring of Aliante Station is separate from Station Casinos’ bankruptcy. Both properties are co-owned by Station Casinos and the Greenspun Corp.
Station Casinos sought bankruptcy protection in July 2009 after earnings were hurt by the recession and the company was unable to meet its debt obligations after an $8.7 billion leveraged buyout by the Fertittas, who founded the company in 1976, and Colony Capital LLC and several other lenders in November 2007.
The court confirmed Station Casinos reorganization plan in August. Chairman Frank Fertitta and his brother, Vice Chairman Lorenzo Fertitta, are leading a restructured Station Casinos.
Contact reporter Chris Sieroty at
email@example.com or 702-477-3893.