Bankruptcy judge approves Station Casinos reorganization plan, wipes $4B debt off books

Bankrupt Station Casinos reorganization approved

RENO, Nev. — A Reno bankruptcy judge has approved a Station Casinos Inc. reorganization plan for creditors to take an ownership stake in some properties and buy others through an auction.

U.S. Bankruptcy Judge Gregg Zive endorsed the plan after an hourlong hearing Friday. Nevada gaming regulators and the National Indian Gaming Commission must confirm the new corporate ownership structure.

Station says in a statement that the plan will make it a stronger, healthier company.

Station Casinos claimed $6 billion in debt when it filed for Chapter 11 bankruptcy reorganization in July 2009. The company is expected to emerge from bankruptcy with a more manageable $2 billion debt.