New Station Casinos reaches agreement to purchase Green Valley assets

By Jennifer Chiou

New York, March 11 - Station Casinos, LLC announced a $500 million agreement with Green Valley Ranch Gaming, LLC to purchase all of the assets of Green Valley Ranch Resort through a pre-packaged plan of reorganization.

Financing for the purchase will include a new credit facility, the company said.

Station Casinos, LLC was formed to acquire most of the properties and assets previously owned by debtor-in-possession Station Casinos, Inc.

As a result of the plan, Green Valley Ranch Resort will become a wholly owned subsidiary of the new Station Casinos.

According to a company news release, a majority of the holders of the first-lien debt, or holders of more than 90% of the dollar amount, of Green Valley have agreed to support the plan.

In addition, Fertitta Entertainment will manage Green Valley Ranch Resort under a long-term management agreement.

Station anticipates filing the plan in April and, subject to regulatory approvals, expects that the bankruptcy will be concluded by the end of the second quarter.

In January, the company received U.S. Bankruptcy Court for the District of Nevada approval to make changes to its confirmed plan of reorganization. Specifically, all holders of operating company unsecured claims that were less than $5 million were to receive a share of $405,000 in cash under the plan instead of receiving warrants.

As previously reported, the plan was confirmed on Aug. 27, 2010.

Station, a Las Vegas-based casino company, filed for bankruptcy on July 28, 2009. Its Chapter 11 case number is 09-52477.

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