Station Casinos seeking support for restructuring

Feb 4, 2009 11:27 PM
Staff & Wire Reports |

Station Casinos Inc. says it is asking bondholders to support a restructuring plan that would reduce the casino operator's debt and interest expenses.

The private company based in Las Vegas said late Tuesday that its owners, the Fertitta family and Colony Capital LLC, will contribute up to $244 million in cash if bondholders agree to the plan.

After bondholders vote on the plan, the company would file for Chapter 11 bankruptcy protection.

The company says it chose not to make a scheduled $14.6 million interest payment Tuesday to holders of $450 million in notes because of the plan.

Station says it has $350 million in cash on hand to pay expenses and fund operations as of Jan. 31.

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