Regulators approve Station Casinos reorganization

"We, as regulators, have to see whether or not the management team is suitable, and clearly it is and has been for many years," said Peter Bernhard, chairman of the commission. "If we did not approve this ... then I think that the state's interest would be harmed considerably."

Station filed for bankruptcy in July 2009 with a need to restructure about us$ 6 billion in debt. The company eventually agreed with most of its lenders to restructure ownership and reduce the debt significantly. Approval from gambling regulators came one day after a federal bankruptcy judge in Reno approved the plans.

The restructured company will have about us$ 2.5 billion in loans, company officials said. "It's tough times out there. I think that we've seen some stabilization," said Frank Fertitta, Station's CEO. "We feel good about the long-term liability of the new company. The new capital structure makes us much healthier and much stronger."

Station has struggled since it was taken private in a deal that closed in November 2007. Since then, gamblers have changed their ways and spent significantly less, hurting the company's revenues and its ability to refinance debt.

Station lost us$ 565.4 million in 2010, us$ 1.68 billion in 2009 and us$ 3.27 billion in 2008. "The downturn since we took the company private was a shock to the system," said Lorenzo Fertitta, Frank's brother and vice chairman of the company's board.

The restructuring plan calls for the loans to be backed up by four of the company's casinos. Separate plans for Green Valley Ranch in Henderson are still pending, and the company expects to lose ownership but keep a management contract at its Aliante hotel-casino in North Las Vegas.

Frank and Lorenzo Fertitta will keep 45 % ownership in the restructured company, while infusing about us$ 200 million of their own money.

Gaming Commissioner Tony Alamo said it's clear that the Fertittas were fighting to keep the company for personal reasons and are the best people to lead it. Alamo said the Fertittas, who own the company that owns the mixed martial arts league Ultimate Fighting Championship, could have moved away from casinos and simply run the growing sport.

"They have skin in the game," Alamo said. "This was personal, not business. "Of course, the reality of it does help to have a business that's us$ 4 billion less in debt," he said.