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Sun file photo
The Red Rock Casino Resort is shown in the western Las Vegas Valley.
Friday
17 June 2011
2:09 p.m.
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."
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Frank Fertitta said "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,"
Joseph Goebbels would be proud.
this case proves how crooked the vegas bankrutpcy system is--how can the same people who raped the company employees and creditors be given the business back again to do it all over. total garbage---system totally corrupt.
I hope Stations' new approach will include non-smoking areas in all its casinos.
FYI--Reno's Peppermill Hotel and Casino Resort now
advertises the inclusion of a non-smoking slot salon and non-smoking poker and card game salon within the overall gaming area. Peppermill resort is one of the largest resorts in the Reno area, having recently added its Italian-themed luxury Toscany hotel and spa and pool plaza with accompaning restaurants.
I appreciate the non-smoking salon emensely. It's such a relief not having to breathe smoke when I am trying to enjoy my favorite passtime. I now go there often!
"this case proves how crooked the vegas bankrutpcy system is--"
There is no such thing as a "vegas bankruptcy system". There are local courts (ie Las Vegas Justice Court, Municipal Court) and then there are Federal courts, which do not vary from federal courts in all 50 States and the Virgin Islands and Puerto Rico. Some states have local rules for Federal court but all are based on the same federal court rules. Bankruptcies are filed in FEDERAL COURT under the Bankruptcy Act and presided over by FEDERAL court judges who are appointed, not voted in for the position.
Bottom line: Station has good bankruptcy attorneys and obviously their BK petition fell under all the appropriate federal bankruptcy court rules.
In2wishin2
Casinos are thinking long and hard about any "no smoking" rules in their casinos. The casinos are there to make money and it is a known fact non-smoking casinos lose money. Ask the owners of the casinos in Illinois.
I used to frequent Sante Fe Station a lot. That Station does have a no smoking section. But the casino is also big enough to do something like that. The section was always crowded but I don't think it was because of the no smoking but because of the machines themselves - very popular machines that paid out. Don't hold your breath waiting for these no smoking sections.
BTW - do you stop breathing when you are outside so as not to breathe in car exhaust?
Mr. Gage.
If you venture into any Station Casino you will see that all of them have non smoking area's and have had for many years. They really are pretty easy to find, they are the ones that very few players at them. Pretty much empty most of the time.
They don't seem to be a popular area for the non smokers I guess.
I'm glad that they are back on track love to eat at Texas Station when I'm in Vegas.
Vegaslee--
Thanks for the tip.
I have not been to the station casinos in LV. except once out to Santa Fe Station. Thunder Valley in Sacramento, which was managed by Stations until recently, does have a fairly large smoke free slot room, sealed off from the main floor by glass doors. It has a pretty good mix of the popular machines and attracts an equal proportion of players as the smoking area. Of course, TV, being the closest casino to Sacramento, gets tremendous patronage.
The Fertittas are geniuses. They got their money on the way up and they got more on the way down. And they end up owning most everything anyway.... Genius!