Station's Bankruptcy

Judge hangs tough in Station bankruptcy

The longtime Nevadan [federal bankruptcy Judge Gregg Zive] is overseeing the Chapter 11 case of bankrupt Station Casinos. The company has $6 billion in debt, a pack of angry creditors and a proposed reorganization plan that splits the casino operator into two entities, but may ultimately leave it whole.

His ruling last month, however, set in motion a court-administered auction of 11 casinos, land holdings and Indian gaming contracts. Fertitta Gaming, a new business formed by Station Casinos' founding brothers, has the initial $772 million "stalking horse bid" for the chunk of the company.

Zive took 90 minutes to explain his rulings last month. Interwoven in that decision was his goal to keep the casinos open and employees working.