Judge Approves Auction of Bankrupt Station Casinos
Gregg Zive, a judge from U.S Federal Bankruptcy court cleared the auction process of Station Casinos which used to be a major player in the local gaming industry. The judgement has opened the way for company’s two–pronged reorganization plan brought in two motions before the court in the month of March. With the ruling, Zive also favored a lease agreement that will be dividing the 18 casino companies into couple of entities in the primary phase.
All the 11 casinos of Station Casinos including Santa Fe Station, Texas Station & the two Fiestas, exclusive American Indian game contracts along with certain land properties will be put on sale in the proposed auction to be one entity and raise money for reorganization purpose.
Feritta Gaming, a combined venture of real estate investor Colony Capital, Station Casino’s organizers Lorenzo Fertitta, Frank Fertitta along with JP Morgan and Deutsche Bank plans for participating in the bidding of properties. They wish to become stalking horse bidder having a considerable amount of $772 million.
As per the court’s ruling, all the prospective bidders require to submit their bidding amount by July 1. The bids are going to be accepted till July end & they need to be more than what the Fertitta Gaming is going to offer.
Zive said he will carry out the auction on Aug. 6 in Reno & appealed everybody to make it successful thereby finding out ways to push the bankrupt gaming company’s value with nearly $6 billion in debts.
Zive made it clear that he was forced to take such decision so as to prevent thousands of people from getting unemployed & ensure smooth operations of the casino properties in the loss making Station Casino.
On Thursday, It took 90 minutes to help Zive make his point. His ruling details came after a marathon 10-hour hearing. He gave equal chance to Attorneys of all sides involved in the case so that no point is left behind.
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