Station Casinos Inc. affiliates including Fiesta Station Inc. filed for bankruptcy protection to implement an asset sale that is part of the parent company’s reorganization plan.
Fiesta Station listed assets of as much as $500 million and debt of more than $1 billion in a Chapter 11 petition filed yesterday in U.S. Bankruptcy Court in Reno, Nevada. Green Valley Ranch Gaming LLC and 25 other related companies also sought court protection.
Green Valley Ranch Resort, Spa & Casino in suburban Las Vegas, a joint venture of Station Casinos and Greenspun Corp., will be acquired for $500 million by a group led by Fertitta family, Station Casinos said last month.
Green Valley Ranch will become a majority-owned part of a restructured Station Casinos, which expects to exit bankruptcy protection this year with most of its properties controlled by the existing owners. Station Casinos is being reassembled by Chairman Frank Fertitta; his brother, Vice Chairman Lorenzo Fertitta; and their partners, which include and Tom Barrack’s Colony Capital LLC and some lenders.
Station Casinos sought bankruptcy protection in July 2009 after its debt was increased by a November 2007 leveraged buyout by the Fertittas, who founded the company, and Colony Capital. The court confirmed the reorganization plan in August.
The case is In re Fiesta Station Inc., 11-51205, U.S. Bankruptcy Court, District of Nevada (Reno). The case will be jointly administered with the main case, In re Station Casinos Inc., 09-52477, U.S. Bankruptcy Court, District of Nevada (Reno).
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