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Arnold M. Knightly

Station parcels offered for sale

20 April 2009

LAS VEGAS, Nevada -- Station Casinos, which has been struggling under a mountain of debt and a declining revenues, is trying to sell several parcels of land it controls, including the former Castaways site.

The 30-acre site on Boulder Highway is listed with Kevin Higgins of Voit Commercial Brokerage for an asking price of $39.5 million. Station Casinos acquired the site when it bought the bankrupt Castaways, formerly the Showboat, in a three-way transaction for $33.7 million in October 2004.

The casino had been closed since January 2004, and the Castaways' 445-room hotel tower was imploded in early 2006.

The company is also listing for sale 7.96 acres of vacant land next to Boulder Station and 4.7 acres adjacent to Sunset Station.

The company wants $6.1 million for the Boulder Station site and $3.99 million for the Sunset Station site.

Lori Nelson, Station Casinos' director of corporate communications, declined to comment Friday. A call to Higgins office was not returned by late Friday.

The land offerings come as Station Casinos is trying to get bondholders who hold $2.3 billion of the company's debt to sign off on a prepackaged bankruptcy plan.

Station Casinos has $5.8 billion in long-term debt, most of which springs from its $90 per share private equity buyout in November 2007.

The company this week secured another extension to continue negotiations with its lenders and bondholders on the $2.3 billion debt until May 15.

Station's proposal asks investors to accept between 10 cents and 50 cents on the dollar in cash and new notes in exchange for their $2.3 billion in notes.

If bondholders accept the debt swap, Station would file a voluntary Chapter 11 bankruptcy and the gaming company's owners -- the Fertitta family and real estate investment firm Colony Capital -- would put $244 million in cash into the company.

Station Casinos owns or leases 359 acres in Las Vegas, 172 acres in Northern California and 204 acres in Reno for possible future development, according to the company's year-end filing in March.

The locals gaming company is also listing for sale 8.61 acres for $12 million near Sunset Road and Lindell Road and 36.61 acres for $15.95 million on the corner of Ann Road and Sloan Lane in North Las Vegas.

How long the parcels have been listed for sale could not be determined Friday afternoon.