he creditors are trying to overturn Zive’s decision to allow a sale of part of the company. The committee of unsecured creditors still has the option of asking a U.S. District Court judge to halt the auction, said the panel’s lawyer, Brett A. Axelrod of Fox Rothschild. “Stay tuned,” Axelrod said Tuesday in an interview.
Zive is overseeing Station’s reorganization, which involves breaking the Las Vegas-based company into two parts, both of which would be taken over and reassembled by a partnership led by company Chairman Frank Fertitta and his brother, Vice Chairman Lorenzo Fertitta. The Fertittas and their partners, including some company lenders, must first win the August 6 auction for a majority of Station’s 18 casinos.
Lori Nelson, a spokeswoman for Station, declined to comment. The case is In re Station Casinos Inc., 09-52477, U.S. Bankruptcy Court, District of Nevada (Reno).