LAS VEGAS (AP) - Regional casino operator Station Casinos Inc.
said Tuesday that it's not interested in a buyout offer from rival
Boyd Gaming Corp., and instead extended its deadline to work
through a plan to restructure its debt.
Most of Station's lenders and senior notes holders have signed
agreements to give the Las Vegas-based company until April to win
approval for its plan, Station said in a regulatory filing to the
Securities and Exchange Commission.
The SEC filing also included a letter dated Tuesday to Boyd
Gaming, which offered $950 million in cash last week for most of
Station Casinos' assets.
Boyd's offer excluded assets secured by certain loans. Boyd said
it was willing to buy the assets after a bankruptcy reorganization
or as part of one.
Station responded that its board had concerns about the offer,
including over Boyd's ability to perform given its own financial
position. Last week Boyd reported losses of $220.8 million for the
fourth quarter, and company executives repeatedly told investors
during a conference call that they would not answer questions about
the buyout offer.
Boyd Gaming Corp., which owns 16 casinos in Nevada, New Jersey,
Mississippi, Louisiana, Indiana and Illinois, has put it $4.8
billion Echelon development in Las Vegas on hold indefinitely.
"It is in the best interests of the company and our
stakeholders to proceed with the current restructuring plan,"
Station Casinos chairman and chief executive Frank J. Fertitta III
said in the letter. "Should circumstances change, we will call
Station Casinos announced earlier this month that it plans to
swap high-cost debt for low-cost debt and a $244 million capital
infusion through a prepackaged bankruptcy filing.
The extension means noteholders can vote on the plan until April
10. The forbearance agreements expire April 15.
This year, the Las Vegas-based company has elected to skip about
$30 million in scheduled interest payments to holders of its senior
notes and senior subordinated notes.
Station Casinos owns 13 casinos, mostly catering to Las
Vegas-area resident. Its properties include Palace Station Hotel &
Casino, Boulder Station Hotel & Casino and Sunset Station Hotel &
AP Business Writer Kristen A. Lee in New York contributed to
On the Net:
Station Casinos: http://www.stationcasinos.com
Boyd Gaming Corp.: http://www.boydgaming.com/