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Arnold M. Knightly

GV Ranch Station files for Chapter 11

12 February 2010

LAS VEGAS, Nevada -- GV Ranch Station Inc., the Station Casinos subsidiary that manages and owns 50 percent of the Green Valley Ranch Resort, filed for Chapter 11 bankruptcy Wednesday evening.

GV Ranch Station filed for bankruptcy in Reno, where the gaming company filed for bankruptcy in July.

Station Casinos spokeswoman Lori Nelson said the latest filing is part of the company's planned reorganization. The hotel and casino will remain open during the reorganization.

"Green Valley Ranch Resort, the property itself, is not in bankruptcy," Nelson said. "Therefore, there will be no impact to the property, its team members, guests or vendors."

Station Casinos receives 2 percent of the property's revenues and 5 percent of its cash flow for managing the 572-room Henderson hotel-casino.

The property, which opened in December 2001, is a 50-50 joint venture between Station Casinos and the Greenspun Corp. The Greenspun Corp., which owns the remaining 50 percent, has not filed for bankruptcy protection on its portion.

The Greenspun Corp. didn't return a request for comment.

The property has more than $770 million in debt, including a $523 million loan maturing in 2014. It also has a $250 million loan due in 2014.

GV Ranch Station listed fewer than 50 creditors who are owed between $10 million and $50 million. It estimates its assets at $100 million to $500 million.

Station Casinos filed for Chapter 11 bankruptcy in late July after failing to reach an agreement with creditors on a plan to restructure its nearly $6 billion in long-term debt.

The gaming company, which wholly owns multiple properties in the Las Vegas area, including Red Rock Resort, Sunset Station and Palace Station, has until late March to submit its own restructuring proposal to the court.

Station Casinos' joint ventures with Greenspun Corp., which include Green Valley Ranch Resort and Aliante Station, were not part of the original bankruptcy.

Station Casinos declined comment on whether Aliante Station will be brought into the company's bankruptcy.