Station Casinos skipped a $15.5 million debt payment Tuesday, the second payment the company has missed this month, it said in a filing with the Securities and Exchange Commission.
Station Casinos skipped a $14.6 million debt payment due Feb. 1 on a separate loan. Instead, it presented a prepackaged bankruptcy filing on Feb. 3 that, if approved by bondholders, could have the company file for Chapter 11 bankruptcy in March and emerge by the summer.
In the same filing, Station Casinos said a lawsuit filed last week by an individual bondholder challenging the bankruptcy plan was “without merit.”
S. Blake Murchison’s lawsuit, filed Feb. 12 in Nevada federal court, claims Station Casinos is favoring institutional investors over individual bondholders by “trying to avoid honoring the debt obligations they owe a large portion of their bondholders.”
Station Casinos disputes the charge in the filing, claiming “all holders of the company’s outstanding senior notes and senior subordinated notes, respectively, would receive the same consideration” under the bankruptcy plan “regardless of whether such holders were eligible to participate in the solicitation of votes for the plan.”