Station Casinos lender group agrees to support plan, asset sale

By Caroline Salls

Pittsburgh, Aug. 19 - Station Casinos Inc. requested court approval of a plan of reorganization support settlement with its independent lender group, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Nevada.

The independent lender group includes BNP Paribas, Natixis, Sandell Asset Management Corp./Castlerigg Master Investments, Silver Point Capital, LP and The Bank of Nova Scotia.

If the settlement is approved, the company said it will have achieved a fully consensual plan with no objections.

Under the settlement, the lenders have agreed to support or not oppose confirmation and implementation of Station's plan. The lenders have also consented to the company's proposed asset sale.

In addition, the lender group will stop all litigation. This stipulation covers any future Chapter 11 proceeds filed by Station's subsidiaries in order to implement the proposed sale.

If the lenders do not breach the terms of the settlement and one or more members of the settling lender group commit to purchase $5.95 million of revolving credit commitments under a new operating company credit agreement before the plan effective date, Station will reimburse up to $2 million of the lenders' fees and expenses.

Station has also agreed to waive any cash collateral order claims against Natixis arising from its status as a non-funding lender.

Station Casinos, a Las Vegas-based casino company, filed for bankruptcy on July 28, 2009. Its Chapter 11 case number is 09-52470.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.