http://www.mesquitelocalnews.com/viewnews.php?newsid=2026&id=2 Station Casinos In Trouble
By Morris Workman 02-05-2009
For years, one of the most popular rumors in town has been the idea that the Station Casinos organization is on its way to Mesquite, with plans to open a new casino, or to buy out one or all of the Black Gaming casinos.
After Wednesday’s announcement, it appears those rumors are put to bed for good.
Like several other well-known casinos in Las Vegas, Station Casinos is on the brink of bankruptcy.
On Feb. 3, the Station Casinos announced that they are going to miss a bond payment of $14.6 million.
It’s similar to the tactic used by Black Gaming recently, which also missed a scheduled bond payment in January.
The difference is that Station Casinos may be destined for Chapter 11 bankruptcy as part of their plan to renegotiate the terms of that bond, according to a Securities Exchange Commission statement filed by the company on Feb. 3.
Another difference is the amount of debt.
Black Gaming, which owns the CasaBlanca, Virgin River, Oasis, and Mesquite Star properties, has a staggering total debt of approximately $200 million.
However, that’s pin money compared to the debt load maintained by Station Casinos.
According to the company’s SEC filing, Station Casinos has more than $2.3 billion in bonds.
The company owns and operates a large variety of casinos in Las Vegas, including Palace Station, Boulder Station, Santa Fe Station, Texas Station, Fiesta, Sunset Station, Gold Rush, and part ownership of Green Valley Ranch.
The Fertitta family also owns the UFC Ultimate Fighting organization which frequently features mixed martial arts fighting on pay-per-view.
Station Casinos is expected to negotiate with its bondholders on the missed payment to avoid a default, similar to Black Gaming’s negotiations with bondholders which helped the Mesquite casinos remain in business.