Having filed for bankruptcy protection; Station Casinos Inc., based in Las Vegas, Nevada; is another casualty in the gambling industry; the once lucrative industry that has been brought to its knees by the recession.The filing by Stations is the downfall of one of the oldest and best known companies in Nevada.
In spite of a good deal of time invested in the attempt to reach an agreement with all their creditors, no arrangement could be made.Bondholders control about 40% of the company’s $5.7 billion debt.Not having some sort of agreement with bondholders could lengthen the bankruptcy process, but all lenders agree with the decision to file.After months of unsuccessful negotiations, everyone is hopeful that the court process will settle remaining issues.
Station’s 18 casinos are not included in the bankruptcy. The entire debt is held by the parent company, Station Casinos Inc.All of the casinos will continue their operations.The company will be allowed to obtain $150 million in funding from non-casino subsidiaries.
Station joins a number of Casino companies that have filed Bankruptcy this year.Some smaller companies such as the Las Vegas Tropicana and Atlantic City‘s Trump Entertainment resorts have already filed bankruptcy this year.Some larger companies like Las Vegas Sands Corp, MGM Mirage, and Harrah’s Entertainment Inc., have been struggling to reduce their debt and slash costs as the recession caused a decrease in business.
Founded in 1976 with just one casino, Stations originally catered to budget-minded gamblers and Vegas area residents.In more recent years they’ve developed high-end resort casinos off the Vegas strip.