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Station still in talks on debt restructuring

Company seeking to extend forbearance period until July 17

Updated Monday, June 22, 2009 | 8:09 a.m.

Station Casinos properties

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Las Vegas locals gaming leader Station Casinos Inc. today said it remains in talks on restructuring its debt.

Since Feb. 3, the company has been in discussions with noteholders and lenders on a proposal in which they would make concessions and affiliates of the company's owners -- the Fertitta family and Colony Capital -- would invest another $244 million in the company.

Since then, the lenders and noteholders have granted forbearance agreements in which they agreed not to take action against Station because of the company's decision not to make certain debt payments, putting it into default.

The last forbearance agreement officially expired May 29, but the parties had agreed to continue discussions and have made progress since then, Station spokeswoman Lori Nelson said.

Now, Station is formally seeking to extend the forbearance period until July 17.

"The lenders currently are seeking requisite approval for the extension of the forbearance agreements, which have expired," Station said today in a filing with the Securities and Exchange Commission.

Under the Feb. 3 plan, the company would file for a prepackaged bankruptcy reorganization that would keep the Fertittas and Colony Capital in control of the company.

Station is proposing the reorganization because the recession has reduced spending at its properties, hurting its ability to make payments on its debt totaling some $5.7 billion.

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