Station Casinos facing lawsuit from bondholder

Feb 15, 2009 1:21 AM
Staff & Wire Reports |

Station Casinos Inc. is facing a lawsuit challenging the company's debt restructuring plan.

Bondholder S. Blake Murchison filed a suit Thursday in U.S. District Court in Las Vegas. The suit alleges the debt-reduction plan would harm him and other bondholders.

Murchison's attorneys, G. Mark Albright and Martin Muckleroy, are seeking class-action status for the suit.

The casino operator announced earlier this month that it plans to swap high-cost debt for low-cost debt and a $244 million capital infusion. It plans to have the transaction approved through a prepackaged bankruptcy filing.

A Station spokeswoman decline to comment on the lawsuit.

The Las Vegas-based company owns several casinos in southern Nevada that cater to locals.

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Information from: Las Vegas Sun, http://www.lasvegassun.com

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