Station Casinos of Las Vegas today said it emerged from bankruptcy.
Nearly two years after its Chapter 11 reorganization filing, the company is out of bankruptcy after its plans were confirmed during the past few weeks by Bankruptcy Judge Gregg Zive in Reno and Nevada casino regulators.
The founding Fertitta family and key lenders will maintain control of the company and all its properties except Aliante Station, which was spun off to holders of $378 million of its debt. Station will continue to manage Aliante Station, a property in North Las Vegas.
Full financial details haven’t yet been reported, but through the bankruptcy Station was expected to shed more than $4 billion of its $6.86 billion in debt.
With the economy picking up, Station during the bankruptcy was also able to hire about 1,000 people under an initiative announced in January to improve service and take back leased restaurant space. It now has nearly 13,000 employees, maintaining its position as a big economic force in Southern Nevada.
Station said CEO Frank Fertitta III and his brother Lorenzo Fertitta invested nearly $200 million in the reorganized company and are its largest shareholders with a 45 percent stake.
“We are pleased to have completed the restructuring process and we look forward to this exciting new chapter in the Station Casinos story,” Frank Fertitta III said in a statement. “Lorenzo and I believe in the future of Las Vegas, which is why we remain committed to the company and the community.”
“We couldn’t have accomplished this restructuring without the loyalty and support of our guests, team members, vendors and the Las Vegas community and I want to sincerely thank them all for their support,” he said.
Besides the 18 local properties the company owns or manages, it has various land holdings and has four tribal development or management agreements in California and Michigan.
Now operating as Station Casinos LLC, the securities registration of the old Station Casinos Inc. was terminated today.
With Station preparing to mark its 35th anniversary on July 1 and out of bankruptcy, its marketing efforts are expected to focus on the "We Love Locals" campaign, which it says is the largest marketing campaign in Las Vegas locals gaming history.
"We Love Locals is now part of our culture and daily fiber," said Kevin Kelley, chief operating officer.
And with the locals gaming market likely to continue to be challenged by tough competition, high unemployment and foreclosures in Las Vegas, Station is expected to focus on improving existing operations before it looks at expansions.
"The local economy has a long way to go before we see significant improvement," Kelley said in an interview. "But we have confidence in the long-term viability of Las Vegas."
As for emerging from bankruptcy, which involved quite a bit of work by management and regular trips to court in Reno, Kelley said: "It’s a great day for Station Casinos. I feel very relieved this chapter in our history is behind us."