Summary
A reorganization plan will certainly aid in lowering debt service. Is this enough of a stimulant to keep things on an even footing until there is some type of a recovery in the economy? Does a law suite, at this time, really help either side? Should all of the involved parties get together to solve the differences with out the lawyers getting involved with a suite? Should the best interest of Sation Casinos properties be the main concern - I think so.....
Analysis
Looks like Station Casinos are planning a reorganization in bankruptcy court. I don't see a problem with a company trying to lower it's debt service in a time real need. It can't be that hard to remember the good times when all was well with the economy and Stations was riding high on the hog. They are looking for a chance to keep their properties open and on somewhat in a profitable position. This sort of self imposed bankruptcy will allow them to enter a phase that will create a new position with their lenders. They are not looking to default on their obligations. They want a chance to get passed this short sided economy. Stations has all ways been a first class operation that was anchored by the Fertitta brothers. They are still in charge of the day to operations and are very capable of putting this company back on their feet.
The locals market is not at it's best. All properties including Stations are trying to get past these bad times. They are making cuts where needed, trying new ways to entice customers into their properties. Problem is, the locals are still going to casinos, but they are spending less time and investing less money. Not the best scenario for a troubled market. It's a matter of time until there is a break in the economy and I find no fault with Stations doing all they can, including debt reorganization, to stay viable in this rather distressed gaming business....
