udge Gregg Zive approved last week the gaming company's disclosure statement and set a August 27 date to begin hearings on the company's reorganization plan. A second day of hearings is scheduled for August 30 if necessary.
A disclosure statement gives extensive information about the bankrupt company's business so its lenders can properly evaluate a proposed reorganization plan. Station Casinos declined to comment after the hearing.
Judge Gregg Zive praised both sides after the hearing, which was scheduled for two days but lasted less than three hours, for reaching agreements on many objections and setting a time line to confirm the plan. "For the most part, the parties were able to arrive at consensual resolution as to what should be disclosed and how it should be disclosed," Zive said. "I commend the parties for that and I think that's how the process is intended to work."
Objections to the reorganization plan are due August 12 with replies due August 20. Ballots are also due August 20. All Half the secured and mortgage lenders holding at least two-thirds of the company's us$ 6 billion debt are required for the reorganization plan to be approved, according to court documents.
The disclosure statement will be updated after next month's auction of 11 Station Casinos properties. Zive told Station Casinos' attorneys to update the financial disclosure by August 10 to show financial projections for the hotel- casinos being auctioned.
Station Casinos attorney Thomas Kreller agreed that providing any projections now would be premature. "Until the auction is complete, we don't know who the winning bidder is," Kreller said. "We therefore don't know whose projections the lenders should be looking at."
The projections also will need to show that a winning bidder could pay any debt used to finance the auction, Zive said. That may be required of the stalking horse bidder, too.
The stalking horse bid or starting bid for the 11 properties is backed by Fertitta Gaming, and supported by primary lenders Deutsche Bank and JP Morgan Chase & Co., and Station Casinos' co-owner Colony Capital.
The us$ 772 million bid includes us$ 455 million in new debt, according to court records. The gaming company's advisers and attorneys are working to determine that the companies that have submitted letters of intent to bid on the Station Casinos properties are qualified bidders.