Last month, boyd gaming made an unsolicited offer to acquire parts of Station Casinos.

Whether the Boyd offer turns out to be a lifeline or a dead weight, Station now has a decision to make. Boyd is offering $950 million for seven of the 14 Station Casinos: Green Valley Ranch (above), Aliante Station, Texas Station, the Wild Wild West and the two Fiesta properties in Las Vegas and Henderson. In a letter to Station Chairman and CEO Frank Fertitta III, Boyd Chairman Bill Boyd and CEO Keith Smith said they would be willing to consider purchasing other assets of Station Casinos as well.

Boyd plans to use part of the $2 billion it has in a revolving credit line that it had arranged for the construction of the now-delayed Echelon project on the Las Vegas Strip.

The deal would be complicated by the fact that the Greenspun Group is part owner of both Green Valley Ranch and Aliante Station.

Station Casinos released a statement on the Boyd offer saying it plans to continue “to work with our lenders and bondholders to pursue our previously proposed plan of reorganization, but we will evaluate the terms of Boyd Gaming’s proposal.”

Station is asking its bondholders to approve a prepackaged bankruptcy plan that would see the company emerge from bankruptcy protection by the summer.

Station recently missed two payments of $14.6 million and $15.2 million. On February 3, the company submitted a second bankruptcy plan to its bondholders, who rejected an initial plan late last year.

The plan allows the company to continue operating as normal by requiring executives Frank and Lorenzo Fertitta—along with private equity partner Colony Capital—to contribute $244 million in cash to the company. Bondholders have until March 2 to approve the offer.

By Casino Connection Staff