Station Casinos Puts Off Bankruptcy Plans For At Least Thirty Days

Trump Entertainment went down this road with little success. The casino company tried to stall lenders for as long as they could, but eventually ended up having to file for bankruptcy. Now, Station Casinos Inc. is in a similar situation.

Station has a planned pre-packaged bankruptcy filing in the works, but it will have to wait a little bit longer before the plan is executed. The company has received a thirty day extension to negotiate debt with lenders.

Station Casinos is having to deal with debt that was in excess of $5.5 billion at the end of 2008. They are trying to negotiate a price for the bankruptcy, and so far they have offered shareholders $.10 to $.50 on the dollar in secured cash and notes.

The deadline now is set for May 15th for the company to successfully negotiate with the lenders. After May 15th, the lenders may then exercise default rights. The deadline was supposed to be tomorrow, and now the company has a month to get everything squared away.

Station Spokeswoman Lori Nelson said the extension allows the company "to continue ongoing discussions regarding the terms of our restructuring with the lenders and the holders of the notes," according to a report on Bloomberg.com.

It has not only been Station Casinos that has dealt with financial difficulties from the economy. MGM Mirage just recently made a loan interest payment of $200 million in order to keep their CityCenter project in Las Vegas from being shut down.

Las Vegas Sands and Sheldon Adelson have had to be creative with ways of raising their financial viability in the past year, and just recently announced they will once again begin projects in Singapore and Macau.

April 15, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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