Boyd going after Station's assets

2 November 2009

LAS VEGAS, Nevada -- Boyd Gaming Corp. filed a motion Sunday in Station Casinos' bankruptcy proceedings, asking the court to allow the casino operator to submit a reorganization plan for its financially troubled rival.

According to the motion, Boyd Gaming, which was rejected when it offered to buy a large chunk of Station Casinos in February for $950 million, is asking the U.S. Bankruptcy Court in Reno to appoint an examiner so other parties can offer competing reorganization plans.

The most likely scenario from a potential Boyd plan would be the acquisition of all or part of Station Casinos, which operates 18 properties in Las Vegas, Henderson and North Las Vegas.

Station Casinos filed for Chapter 11 bankruptcy protection at the end of July.

Last week, the company asked the bankruptcy court for a four-month extension to exclusively propose a plan to reorganize its finances. The current deadline is Nov. 25.

In its motion, Boyd Gaming said it was not opposed to Station Casinos receiving an extension until March to file its reorganization plan.

Boyd Gaming is also a creditor in the bankruptcy, having acquired a stake in Station's debt.

But Boyd wants an outside party to evaluate Station Casinos' assets.

"Boyd believes that the highest priority issue currently before this court is to evaluate sales alternative that realistically could compete with (Station Casinos') attempts to reorganize with insider-retained equity," according to the motion.

Boyd wants an examiner to share information with both Station Casinos and other interested parties, which would allow the reorganization process to move forward on a quicker basis.

In the filing, Boyd Gaming said it is unable to make another offer for Station Casinos until its rival's finances and properties have been evaluated.

Boyd said Station Casinos' management never realistically considered its February offer. Boyd said anything learned by the examiner wouldn't be "competitively harmful" to Station Casinos.

"Boyd expects that the expert serving in that role will arrange to provide the data needed for informed bidding, so that potential buyers like Boyd can provide data on value that (Station Casinos) cannot dismiss as being too hypothetical, conditional or nonbinding," the motion stated.

Boyd Gaming spokesman Rob Meyne declined comment beyond the 38-page filing.

Station Casinos spokeswoman Lori Nelson declined comment on the filing.

Boyd Gaming Chief Executive Officer Keith Smith said last week the company has a $2 billion credit revolver, once designated for the now-delayed Echelon, which can be directed toward acquisitions.

He said Boyd was serious about acquiring all or a portion of its rival.

"Let me be clear. This is a serious offer," Smith said. "Bankruptcy can be a distracting and expensive process, and it does not appear to be in the best interests of anyone for this to drag on."

Smith said buying key assets within Station Casinos' 18-property portfolio in Southern Nevada makes sense for all parties, including Boyd Gaming shareholders, customers, and Station Casinos' creditors, employees and customers.

"We can deliver more value to the creditors with a fair offer and these assets," Smith said. "We believe strongly in the long-term viability of the Las Vegas market."

Station Casinos filed for bankruptcy protection on July 28 with roughly $6.5 billion in long-term debt.

Creditors are feuding over portions of Station's November 2007 transaction in which it was taken private by an affiliate of Los Angeles-based investment firm Colony Capital and the Fertitta family, which founded the company.

One group of creditors believes Station Casinos' board may have had conflicts of interest when it rejected Boyd Gaming's offer to buy most of Station Casinos' assets and when it arranged financing for the company's buyout.

The lenders are questioning whether the buyout's financing, which is divided into three stacks of loans, each with different investors but all controlled by Station Casinos' board and administrating bank, Deutsche Bank, might be improperly benefiting the company and its primary lenders at the expense of the smaller lenders.

Company attorneys told the judge extending the timeline could save time and money while allowing Station Casinos to come up with a plan "that has the best possible chance of success for the reorganization of the Debtors' businesses."

Station Casinos also manages an American Indian casino near Sacramento, Calif.


Related Links
Boyd Gaming Corporation Gaming Vendor Information
Nevada Gambling


Copyright GamingWire. All rights reserved.
Featured Vendors
TDN Money Systems
Casino Schedule Ease
TDN Money Systems
Cage, cash/chip handling experts representing CountR, ARCA, AccuCASH, Fujitsu & NCR
Casino Schedule Ease
Get a 90-Day Free Trial of 100% contactless, customizable table game & full casino scheduling
Imagine This
Casino City Press
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Casino Network
Plastic Card ID
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Plastic Card ID
The World’s Lowest Prices on Printed Plastic Cards and Card Printers!
TribalHub
Kallop
TribalHub
23rd Annual TribalNet Conference Sept 12-15, 2022 Grand Sierra Resort & Casino in Reno, NV
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.
Betson Imperial Parts & Service
Oklahoma Indian Gaming Association (OIGA) Conference
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: Aug 9-11, 2022 in Tulsa!
Slot Machines Unlimited
TOP ONE TECH LIMITED
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
TOP ONE TECH LIMITED
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
AmericanChecked
Sunkist Graphics, Inc.
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Talisman Group Creators of EZ Baccarat
Rymax Marketing Services, Inc.
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI


Your Guide to 15,511 Gaming Industry Suppliers