Changes disclosed in Aliante Station management contract
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Thursday
17 November 2011
12:48 p.m.
VEGAS INC coverage
Station Casinos LLC’s 16-day-old contract to manage Aliante Station in North Las Vegas has been terminated for undisclosed reasons, but Station, nevertheless, expects to remain as the manager indefinitely.
The property’s new owner, ALST Casino Holdco LLC, said Thursday that it and Station have agreed to terminate the management agreement dated Nov. 1.
“Station will continue to operate and manage the Aliante Station Casino + Hotel for a period of time pursuant to the transition services sections of the management agreement,” ALST said in a regulatory filing signed by one of its investors and managers, Soohyung Kim.
Kim, contacted in New York at his Standard General LP investment fund office, said he couldn’t elaborate on the regulatory filing.
Under terms of the transition services section of the management agreement, Station could continue to manage the property for up to 18 months — though ALST has the right under certain circumstances to replace Station at any time during that period.
Marc Falcone, Station’s chief financial officer, said in an interview that the parties continue to talk about their arrangement and that nothing substantial will change anytime soon because of Thursday’s regulatory disclosure.
Station’s Boarding Pass customer loyalty program will continue at Aliante Station and the property will keep the “Station” name as Station continues its management duties, Falcone said.
“We don’t anticipate any change in the foreseeable future as it pertains to the management of the property,” Falcone said.
As the old Station Casinos Inc. emerged from bankruptcy this year, Aliante Station became the only property that Station’s founding Fertitta family and Station’s lenders didn’t continue to own.
Aliante Station, a property hit especially hard by the recession, instead was spun off to the holders of its $378 million in defaulted debt, including investors Standard General, Apollo Management and TPG Capital, formerly Texas Pacific Group
Aliante Station, which includes 202 hotel rooms and 2,013 slot machines, is a locals-oriented property that was initially developed by Station and the Greenspun family, owner of the Las Vegas Sun and Vegas Inc.
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Translation...YOU'RE FIRED! Lol, ya gotta love it
People can snark all they want, but this is a very nice, new and clean property. I think any casino operator in Las Vegas would gain by being assoicated with it.
Stations has gotten away with financial FRAUD. They were 6B in debt and got to write off( excuse) $4 B of it. They still owe $2 B and Fertitta bros still maintain 40% of Stations. Isn't America wonderful. Now let me see u do this.
Smart Move: Keeping the crooks in charge was a big mistake. Thankfully one of the creditors has no realized this quickly and now wants to get far away from them by terminating the agreement.