LAS VEGAS (CelebrityAccess MediaWire) — As expected, numerous subsidiaries of Station Casinos Inc. have filed prepackaged Chapter 11 bankruptcy reorganization petitions in Nevada courts, joining the original Station bankruptcy filing that dates from 2009.
According to Bloomberg, Station claims the filings are necessary to complete the restructuring which will see most of the casino's various properties acquired by lenders and members of the Fertitta family, who founded the casino brand.
The routine petitions, if accepted by the courts, will allow for the Station subsidiaries to continue to pay vendors and employees, as well as continue gaming operations.
Among the subsidiaries up for grabs is the Green Valley Ranch Resort and Spa, which is being purchased out of bankruptcy by an entity affiliated with the Fertita family for $500 million. According to Vegas Inc. the Fertita holding company has agreed to pay Green Valley co-owners, the Greenspuns' gaming company, a .3 percent share of the monthly gross revenue from the property in exchange for keeping the resort's name.
The licensing agreement will help likely help to avoid further litigation over the property. A previous independent investigation over alleged financial mismanagement at the casino reportedly discovered that in 2007, Green Valley Ranch made distributions or loans of $285 million apiece to its owners, which were subsequently 'forgiven' in 2008. The investigation however, found that there appeared to be no indication of wrongdoing in connection with these loans and noted that they were "reasonable" at the time and did not result in the direct insolvency of the resort.
Station originally filed for chapter 11 bankruptcy protection in January of 2009. In Q4 of last year, the company and its subsidiaries racked up more than $176 million in losses, Vegas Inc. reported.
The complete list of subsidiaries joining the filing includes:
Auburn Development, LLC; Boulder Station, Inc.; Centerline Holdings, LLC; Charleston Station, LLC; CV HoldCo, LLC; Durango Station, Inc.; Fiesta Station, Inc.; Fresno Land Acquisitions, LLC; Gold Rush Station, LLC; Green Valley Station, Inc.; Inspirada Station, LLC; Lake Mead Station, Inc.; LML Station, LLC; Magic Star Station, LLC; Palace Station Hotel & Casinos, Inc.; Past Enterprises, Inc.; Rancho Station, LLC; Santa Fe Station, Inc.; SC Durango Development, LLC; Sonoma Land Holdings, LLC; Station Holdings, Inc.; STN Aviation, Inc.; Sunset Station, Inc.; Texas Station, LLC; Town Center Station, LLC; Tropicana Acquisitions, LLC; Vista Holdings, LLC; Aliante Station, LLC; Aliante Holding, LLC; Aliante Gaming, LLC; Green Valley Ranch Gaming, LLC. – CelebrityAccess Staff Writers