Late this Monday, Boyd Gaming Corp rescinded some of its objections with regards to Station Casinos’ bankruptcy, although the company insisted that it is still very much committed to the acquisition of all or even part of its local gaming rival. In the motion filed with the US Bankruptcy Court for Reno, Nevada, Boyd Gaming stated its intention to concentrate specifically on one part of the reorganization plan for Station Casinos, a proposal that would sell off a large portion of the current company including popular sites such as Texas Station, the Fiesta Properties and Santa Fe Station – all of which would be sold through what would be a necessary bankruptcy court auction to the highest available bidders.
Just last week key members of the founding family of Station Casinos stated their intention to undertake a $772 million preliminary bid through the recently formed Fertitta Gambling in order to acquire those assets. Station Casinos would, under the currently proposed reorganization plan, spin off its five biggest resorts that would include both Sunset Station and Red Rock Resort. These assets would be put into a separately established holding company that would be owned by the company’s lender Colony Capital, a Los Angeles-based real estate company, as well as Fertitta Gaming.
A company spokesman for Boyd Gaming, Rob Meyne, stated the company’s intention is to channel its efforts on its main objections that directly relate to the currently proposed bidding for Station’s assets, also stating that the independent lenders as well as the officially assigned committee of unsecured lenders have objected themselves to the current master lease agreement as well as the exclusivity motion. It is these objections that will be heard net weeks at the court in Reno.
The overall deal would demand $317 million in cash as well as $455 million in new credit, although there is no elaboration as yet as to how much money would be committed by each interested party.
During the course of the past year Boyd Gaming has already made two different bids to acquire parts of – or all of – Station Casinos, and under Station Casinos’ currently proposed reorganization plans five resorts – the Red Rock Resorts, Boulder Station, Sunset Station, Wild Wild West and Palace Station – would all become their own company that the company’s lenders JP Morgan 安and Deutsche Bank would own and subsequently sell a 46% stake of to the Fertitta Gaming company for the sum of $85.6 million. The casinos would then be operated by Fertitta Gaming under long-term management contracts.
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