Station Casinos debtor's lenders to be removed from creditors group

By Caroline Salls

Pittsburgh, June 13 - Station Casinos, Inc. debtor Green Valley Ranch Gaming LLC's motion for a court order directing the U.S. Trustee to remove three secured lenders from Green Valley's unsecured creditors' committee was approved on June 10 by the U.S. Bankruptcy Court for the District of Nevada.

The lenders in question are MFS Investment Management, Panton Capital Group and Babson Capital Management, LLC.

Green Valley said it believes the lenders should not serve on the committee, because they are subordinated second-lien lenders, not unsecured creditors, and prohibited under their intercreditor agreement from discharging their fiduciary obligations as creditors' committee members.

In addition, Green Valley said the lenders are conflicted as holders of second-lien claims and cannot adequately represent general unsecured creditors.

The Station debtor said the lenders are also just one creditor because they hold loans under a single credit agreement and have delegated authority under that agreement to the second-lien agent.

Station, 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.