Lenders, Station Casino founders Fertitta brothers win uncontested bankruptcy auction for co.

Lenders, majority owners win Station Casinos

LAS VEGAS — Station Casinos founders Frank Fertitta III and Lorenzo Fertitta on Friday won formal approval from a federal bankruptcy judge in Reno to keep ownership of most of their company.

At issue was ownership of 11 casinos in Nevada that are mostly geared toward Las Vegas locals plus other company business.

U.S. Bankruptcy Court Judge Gregg Zive approved a $772 million bid for the casinos from the Fertittas and their primary lenders and Colony Capital as the best offer.

After rival casino operator Boyd Gaming dropped its pursuit of Station’s assets last week, the offer from the Fertittas’ holding company also was the only qualified bid.

“Assuming the plan of reorganization is confirmed by the bankruptcy court in late August, we look forward to a new beginning for our company,” said Scott Nielson, Station Casinos executive vice president.

Court hearings on the entire plan are set Aug. 27 and Aug. 28.

The reorganization proposal gives the Fertittas’ holding company ownership of several of Station’s largest assets, including Red Rock Casino Resort & Spa, Palace Station and Sunset Station.

If approved, the plan lets the Fertittas retain ownership and managing responsibilities for all the properties that were part of the bankruptcy, plus land holdings and American Indian casino management contracts that were part of the auction.

Marc Falcone, chief financial officer of Fertitta Gaming, said the company appreciated the support of its creditors and partners in the bid.

Two joint ventures Station held interests in — Green Valley Ranch and Aliante Station — are not included in the bankruptcy case and are going through their own restructuring.