Historical Restructuring Agreement for Major Gaming Client
Station Casinos, Inc., represented by Dawn Cica and Laury Macauley of Lewis and Roca as Nevada counsel to Milbank, Tweed, Hadley & McCloy, completed its reorganization and officially exited bankruptcy some $4 billion lighter in debt; the deal returns operating control of the company to two members of Station's founding family. Since its founding 35 years ago, the company has been the biggest gaming, casino, and resort operator in Nevada, with 13,000 employees and 18 operating resorts and casinos. Its Chapter 11 bankruptcy filing, with $6.5 billion in listed debt, was one of the largest ever in the casino industry.
Under the terms of the deal, the Fertitta brothers agreed to invest nearly $200 million in the new company. They now own 45 percent of its outstanding shares. Deutsche Bank AG, the largest secured creditor, now holds a 25 percent stake, and JPMorgan Chase & Co., 15 percent. Former unsecured bondholders own 15 percent of the shares.
Under the terms of the deal, the Fertitta brothers agreed to invest nearly $200 million in the new company. They now own 45 percent of its outstanding shares. Deutsche Bank AG, the largest secured creditor, now holds a 25 percent stake, and JPMorgan Chase & Co., 15 percent. Former unsecured bondholders own 15 percent of the shares.