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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (3365)	7/28/2009 9:56:48 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 6370

The end of a financial acquisition, done in the 2007 buying binge. Tuition fee paid: 8.7B Station Casinos Files for Bankruptcy as Talks Fail (Update1) Share \| Email \| Print \| A A A By Brett Pulley and Beth Jinks July 28 (Bloomberg) -- Station Casinos Inc., taken private by Colony Capital LLC and management in 2007, filed for Chapter 11 bankruptcy after failing to reach agreement with unsecured creditors on a plan for a pre-packaged court restructuring. None of the company’s operating casinos were included in the filing in U.S. Bankruptcy Court in Reno, Nevada, Station said today in a statement to regulators. The Las Vegas-based company can borrow as much as $150 million from a non-operating unit, the filing said. Today’s filing, coming after months of talks, allows Station to enlist the court’s assistance in reaching an agreement with unsecured creditors on restructuring $5.7 billion in debt, Chief Accounting Officer Tom Friel said in an interview. Since February, the company had been operating under debt forbearance while negotiated with banks and noteholders. “There is no agreement with the unsecured creditors,” Friel said. “It’s been difficult. Station’s owners, the founding Fertitta family and Tom Barrack’s Colony Capital LLC, proposed a pre-packaged bankruptcy plan on Feb. 3 that would allow them to retain control. A previous forbearance expired on July 17. The company said then that discussions with lenders continued without a formal extension. The company’s said today that secured creditors agreed to allow certain non-operating subsidiaries to file for bankruptcy protection, while keeping the operating companies for its regional casinos out of court. ‘Business as Usual’ “The most important part of our company is the 18 casinos we have here in the valley” around Las Vegas, Chief Operating Officer Kevin Kelley said in an interview. “It’s business as usual.” In February the company offered 10 cents to 50 cents on the dollar in secured notes and cash to holders of about $2.3 billion of bonds. The company said at the time that some secured lenders backed the plan. As part of that plan, affiliates of the Fertitta family and Colony agreed to invest as much as $244 million to maintain their existing ownership. Station rejected a Feb. 23 offer by Boyd Gaming Corp. to buy unsecured assets. Station said in March it had no plan to sell assets and would proceed with its restructuring. The Fertittas and Colony, a Los Angeles-based private equity firm, paid $5.4 billion and assumed about $3.3 billion in debt in the November 2007 takeover of Station. Deutsche Bank AG and JPMorgan Chase & Co. affiliates provided debt financing. Station’s casino include Green Valley Ranch, Aliante Station and Gold Rush