Station Casinos debtor to turn over $12.5 million in cash collateral

By Lisa Kerner

Charlotte, N.C., March 22 - Station Casinos, LLC debtor FCP PropCo, LLC asked the court for entry of an order approving an agreement for its turnover of $12.5 million of cash collateral, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Nevada.

The agreement is among PropCo and mortgage lenders German American Capital Corp. and JPMorgan Chase Bank, NA related to Station Casinos' $500 million agreement to sell all of the assets of Green Valley Ranch Resort to Green Valley Ranch Gaming, LLC through a pre-packaged plan of reorganization.

A hearing is set for May 25.

The mortgage lenders demanded PropCo turn over the cash collateral to the escrow agent as the designee of the mortgage lenders. The funds would be used as the deposit required for the asset sale.

At Dec. 31, PropCo was holding approximately $187.7 million of cash collateral, the filing said.

In January, Station Casinos received court 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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