LAS VEGAS (AP) -- Station Casinos Inc.'s owners and some of its lenders have agreed to make a $772 million opening bid at a proposed bankruptcy auction for most of the company's properties, Station Casinos said Monday.
The Las Vegas-based company, which owns all or part of 18 properties, is proposing to split itself in two. It said Monday in a regulatory filing that owners Frank Fertitta III, Lorenzo Fertitta and Colony Capital -- along with lenders on four of Station's largest properties -- will make the so-called stalking horse bid.
The company said the agreement includes 60 percent of the lenders to the properties to be auctioned. The four properties not included in the auction -- Red Rock Casino Resort Spa, Palace Station, Boulder Station and Sunset Station -- would be taken over by their lenders under a reorganization proposed in federal bankruptcy court in Reno. Those lenders would then sell a 46 percent stake in that separate company to the Fertittas. The plan requires court approval.
Station Casinos, which first sought bankruptcy court protection in July, said that lenders holding 90 percent of its secured debt support its proposal. Station has been struggling since it was taken private in a deal that closed in November 2007. Since then, gamblers have spent significantly less than before the recession began -- reducing Station's revenues and hurting its ability to refinance its debt. The company last month said it had $5.92 billion in long-term debt as of Dec. 31.
Station reported losing $1.13 billion during the fourth quarter last year after recording big drops in the value of its joint ventures, land and other assets for a total of $1.29 billion.
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