International edition
October 20, 2021

It complains it devalues some casinos

Boyd objects to Station Casinos bankruptcy plan

(US).- Casino operator Boyd Gaming Corp. is objecting to a proposed bankruptcy plan by rival Station Casinos Inc., saying it devalues certain properties that would be sold under a court auction.

B

oyd said in a Wednesday filing in federal bankruptcy court in Reno that Station's current plan would call for most of its properties to be sold without player databases and other operating tools essential for casinos.

Boyd said that makes the properties less valuable to outside buyers. "Few non-insider bidders, if any, would want to compete in this unfair process," Boyd lawyers wrote in the objection.

Boyd has publicly declared interest in buying out its main rival in the locals casino market in Las Vegas, but its offers have been rejected. A judge has set a May 4 hearing to discuss Station's proposal. Station owns all or part of 18 properties and is proposing to split itself in two.

Station said in a regulatory filing this week that lenders holding 90 percent of its debt are backing a plan for lenders to four casinos to take ownership of the properties, with Station's owners buying new stakes for new investments. The four properties to avoid auction would be Red Rock Casino Resort Spa, Palace Station, Boulder Station and Sunset Station, Station Casinos said.

The rest would be sold, and Station owners Frank Fertitta III and Lorenzo Fertitta have said they plan to aggressively pursue them. The Fertittas, along with the lenders to the four properties that would avoid auction and others, agreed to a us$ 772 million stalking horse bid that sets the bar for the auction.

Boyd said it is prepared to compete with the stalking horse bid, but it asked for buyer protections and a reformed bidding process.

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