Station's Bankruptcy

Station Casinos Wins Court Approval of Sale to Chairman Fertitta's Group


Station Casinos Inc., the biggest U.S. gambling company in bankruptcy, won initial court permission to sell most of its casinos to a group led by Chairman Frank Fertitta in a deal worth $772 million.

U.S. Bankruptcy Judge Gregg Zive today approved the results of an auction process in which no other qualified bidder challenged a group led by Fertitta and his brother, Vice Chairman Lorenzo Fertitta. Companies, including Boyd Gaming Corp., declined to bid after Station announced a settlement with bondholders last month.

“It’s a milestone, and a very important one,” Station lawyer Paul Aronzon said of the settlement. Next week, the company may settle with a group of dissident lenders, which would end all creditor opposition to the Fertittas’ plan to retain control of the gambling company, he said.

Station’s plan to reorganize and exit bankruptcy involves breaking the Las Vegas-based company into two parts, both of which would be taken over and reassembled by the Fertittas and their partners, which include some company lenders.

The group is scheduled to return to court Aug. 27 in Reno, Nevada, to seek final approval of the sale and the company’s reorganization plan.

“We look forward to a new beginning for the company,” Station Executive Vice President Scott Nielson said today in a statement.

The case is In re Station Casinos Inc., 09-52477, U.S. Bankruptcy Court, District of Nevada (Reno).