One day after releasing its first quarter revenue report, Station Casinos announced it would continue to discuss restructuring options with bondholders beyond a forbearance agreement deadline.

The lapsed deadline signaled the beginning of a new forbearance agreement with the company’s lenders. This agreement is the third since Station began negotiating bankruptcy options. This latest forbearance expired May 29.

“The company said that the extended forbearance period will permit it to continue ongoing discussions regarding the terms of its restructuring with the lenders and the holders of its notes,” Station said in a filing with the Securities and Exchange Commission.

In another filing, the company noted that it would be forced to file for Chapter 11 protection if bondholders did not approve a restructuring plan. It is unclear if this latest forbearance agreement was necessary for Station to make changes to its existing plan, which would require Station bondholders to make concessions while owners Colony Capital and the Fertitta family injected $244 million into the company.

Station Casinos is currently operating under $5.74 billion in debt, and its revenue in the first quarter of 2009 fell to $307.8 million from $378.8 million in the first quarter of 2008.

By Casino Connection Staff