The Wall Street Journal has a story regarding the Fertitta-owned Station Casinos filing for Chapter 11 bankruptcy protection to restructure roughly $5.7 billion dollars in debt:
Despite months of haggling, the company failed to reach a prearranged agreement with all its lenders. Bondholders control $2.3 billion of the company's $5.7 billion in debt.
The company's 18 casinos are separate entities wholly owned by Station and aren't part of the bankruptcy filing. They will continue to operate as usual, a Station official said. All of the debt is held by the parent company.
However, senior secured lenders did agree to allow the parent company to borrow up to $150 million from its noncasino subsidiaries, according to a filing with the Securities and Exchange Commission.
The lack of an accord with bondholders could mean a long haul in bankruptcy court. But "all the lenders are on board" with the move to file, said Station Chief Accounting Officer Tom Friel.
Lorenzo Fertitta is no longer the acting President of Station Casinos since June 19th, 2008 in which he stepped down to focus solely on helping Zuffa succeed. We've heard some quotes in interviews regarding Lorenzo's activities in the international scene in helping the UFC gain television deals in other countries to expand their brand.
Frank Fertitta III is, however, still the CEO of Station Casino, and the family fortune will most likely take a hit in this instance. Don't feel too bad for the Fertittas though. Lorenzo and Frank have plenty of other opportunities to continue their run on the billionaire's list, and Station Casinos could very well come out of the Chapter 11 at some point and make huge money once again. Oh, and there is also the potential that the UFC is heading to primetime network television. That'll only bring in more dollars for Zuffa.