forbearance agreement is an arrangement made between a creditor and its lenders to postpone, reduce or suspend payment due on a loan for a limited and specific time period.
Station Casinos had said it may have to file for bankruptcy protection if agreements could not be reached with its lenders. The Las Vegas-based company owns, operates and manages casinos in Las Vegas, geared primarily for the local community.
The forbearance agreements with the holders of the old senior and senior subordinated notes and the lenders under its previous credit agreement dated November 7, will expire on April 15, the company said in a statement.
Boyd Gaming Corp said in February it was interested in buying Station Casinos, which owns and manages casinos geared for the local population in Las Vegas. In a response to Boyd Gaming on Tuesday, Station Casinos said it was wary of sharing sensitive information with a competitor and nervous about the risks associated with getting regulatory or other governmental approvals.
"In light of the foregoing, and for other valid considerations, our board has concluded that it is in the best interests of the company and our stakeholders to proceed with the current restructuring plan," wrote Frank Fertitta III, chairman, president and chief executive officer, in a letter to Boyd Gaming released by the company. "Should circumstances change, we will contact you."