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New Joint: Impecunia Station
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From the airbrushed skies of casino promenades, let the Iraqi protestor sized torrent of 'other shoes dropping' commence.
Locals casino operator Station Casinos (owners of Red Rock, Palace Station, Aliante Station, the dead-in-the-water Viva Station and about 10 or so other locals gambling joints) has announced plans to file for Chapter 11 bankruptcy protection - on tax day, April 15th.
Station Casinos went private last year, bought out by the Fertitta Brothers (25%) + Colony Capital (75% - owners of the LV Hilton, A.C. Hilton and Resorts A.C. among other joints, hotels and real estate holdings). Total price tag for the privatization was +/- $3.5 billion bucks, $2.3 billion of which was put up by bondholders. The company currently has about $5.4 billion in debt. About three weeks ago Boyd Gaming offered to buy a majority of Station's assets for $950 million bucks.
Beyond the mind boggling numbers and the seeming stupidity of Station going private, one has to wonder if this bankruptcy was *ahem* in the cards from the beginning. In the world of high finance and business, bankruptcy doesn't mean that you are forced to 'go out of business' (Chapter 7) but instead is a gigantic reset button on forgiving debts, often with debtors left holding the bag.
I'm wondering if Colony Capital as a whole might be in Jeopardy, baby.

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