Station Casinos files for Ch. 11 protection
Bankruptcy
Station Casinos Inc. voluntarily filed for Chapter 11 bankruptcy protection Tuesday, after the casino operator and its bondholders failed to reach a full agreement during months of negotiations.
The company, which blamed the faltering economy for a falloff in its finances, has $5.7 billion in debt, Chief Accounting Officer Tom Friel told The Associated Press.
A recession-linked decline in tourism is plaguing the casino industry after years of rising profits.
Most of Station's assets are maintained in casino-operating subsidies and affiliates and were not included in Tuesday's filing with the U.S. Bankruptcy Court in Reno, Nev. The assets included in the filing are "nominal," Friel said. Executives said operations at the 33-year-old company will continue as usual.
Station has between 100 and 1,000 creditors, Friel said.
"This is a global economic issue that has forced us to have to go back and reset our debt," Chief Operating Office Kevin Kelley said during an interview.
"The restructuring of our debt will provide us with the financial flexibility necessary to meet the challenges of the current economic environment," Chairman and CEO Frank J. Fertitta III said in a statement. "Equally important, it will provide the resources necessary for us to continue to invest in our properties, take advantage of opportunities as they arise and ultimately enable us to emerge as a stronger company."
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