By Beth Jinks
(Updates with restructuring plan in third paragraph.)
March 10 (Bloomberg) -- Green Valley Ranch Resort, Spa &
Holders of more than 90 percent of the resort’s first-lien debt agreed to the deal, which is expected to be completed by June 30, Station Casinos said today in an e-mailed statement. The acquisition will be partly financed by a new loan.
Green Valley Ranch will become a majority-owned part of a restructured Station Casinos, which is expected to exit bankruptcy protection this year with most of its properties controlled by the existing owners. Station Casinos is being reassembled by Chairman Frank Fertitta; his brother, Vice Chairman Lorenzo Fertitta; and their partners, which include and Tom Barrack’s Colony Capital LLC and some lenders.
Station Casinos filed under Chapter 11 in July 2009 in U.S. Bankruptcy Court in Reno, Nevada, after its debt was increased by a November 2007 leveraged buyout by the Fertittas and Colony Capital.
The Green Valley Ranch deal means 17 of the 18 casinos owned and managed by Station Casinos before the bankruptcy will remain under control of the Fertittas, who founded the company. The 18th is Aliante Station, another Greenspun joint venture, which creditors including TPG Capital and Apollo Global Management LLC are poised to take over, according to two people with knowledge of the matter.
Opened in December 2001, Green Valley Ranch is located about 13 miles (21 kilometers) southeast of the Las Vegas Strip. It is surrounded by the area’s first planned housing community, a project developed by the Greenspun family.
The Greenspuns have an option to remain part-owners of Green Valley Ranch, Lori Nelson, a Station Casinos spokeswoman, said today. Henderson, Nevada-based Greenspun Corp. is a family- controlled investment group that owns the Las Vegas Sun newspaper, magazines, Nevada television stations and real-estate developer American Nevada Co.
The Fertittas will continue to manage the resort and retain all employees under the accord, the company said today.
The case is In re Station Casinos Inc., 09-52477, U.S. Bankruptcy Court, District of Nevada (Reno).
--Editors: Stephen Farr, Michael Hytha.
To contact the reporter on this story: Beth Jinks in New York at This e-mail address is being protected from spambots. You need JavaScript enabled to view it
To contact the editor responsible for this story: Anthony Palazzo at This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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