The company is expected to emerge from bankruptcy in early 2011 with a more manageable debt of $2 billion.īefore the bankruptcy filing, the company’s creditors rejected an offer that would have allowed the Fertitta family and real estate investor Colony Capital to retain control.Īccording to Bloomberg News, at least $1.7 billion of Station’s debt was the result of a leveraged buyout in November 2007 by Fertitta Colony Partners, which took the casino operator private. Station Casinos filed for Chapter 11 bankruptcy reorganization in July 2009, owing some $6 billion.

Zive called the reorganization plan complicated, but he said it will allow the company to service its remaining debt. He was happy that all 17 classes of the company’s creditors eventually signed off on the deal.

In remarks from the bench, Zive said his goal at the outset of the process was to ensure that a “fair and equitable” plan of reorganization was approved. Bankruptcy Judge Gregg Zive took a little more than an hour. The plan will give creditors an ownership stake in the reconfigured operation, with the Fertitta family remaining in control of the company. A federal bankruptcy judge in Reno confirmed Station Casinos’ plan of reorganization Friday after 90 percent of the company’s secured and unsecured creditors signed off on the deal, which will wipe some $4 billion in debt from the company’s books.

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