Reorganization is
Inevitable for Station Casinos
August 31, 2010
Station Casinos, which
started out in 1976 by building the Bingo Palace. The establishment was
later named the Palace Station and the company would go public in 1993.
Founder, Frank Fertitta, Jr. based his company out of Summerlin, Nevada
but sadly passed away August 21, 2009 from complication with a heart
condition. He would not see his beloved online gambling company brought
to Chapter 11 but he would be proud at how his successors would work
diligently and respectfully to reorganize the land-based and online
gambling giant.
Currently, Station Casinos
along with Boyd Gaming, Cannery Casino Resorts, American Casino &
Entertainment Properties, and Herbst Gaming, govern the locals market in
Las Vegas. Bad blood flows between many of the operators but they remain
seated side by side on the committees to make Las Vegas robust again.
Judge, Gregg Zive was heard
praising both sides of the reorganization which reached a quick
agreement after only three hours. Both are dedicated to setting a time
line that would authorize the plan to move forward.
Station Casino is currently
looking at a $6 billion dollar debt and due to that overwhelming amount,
the secured mortgage lenders who are holding at least two-thirds of the
online gambling company’s debt are required to approve the plan for
reorganization. This was decided by the court and for now it looks like
the parties involved are arriving at consensual resolutions.
For now, the U.S.
Bankruptcy Court in Reno, Nevada has cleared the way for Station Casinos
to begin petitioning votes for online gambling reorganization. This news
is not only good for the Fertitta family and all of their employees and
partnerships, but for the future of Las Vegas.
