On Feb. 23, 2009 Boyd Gaming, Casino operator in Las Vegas, offered its rival Station Casinos Chairman and CEO, Frank Fertitta III to purchase some of the company’s valued assets for a $950 million. However, Fertitta wanted to make-up for the fragile economy by offering a deal to its bond holders, but the offer did not attract a majority of the bond holders and they rejected the deal.

On February 3, 2009 Station decided to file Voluntary Chapter 11 to declare Bankruptcy or to propose fresh terms to clear the debt of $ 2.3 billion. Also, a few of the investors and Ferititta were offering to invest $244 million into the deal as a part of fresh terms.  March 2, 2009 is the deadline proposed for the bond holders to vote for or against the deal; Stations have already skipped the interest payment, which were due on February.

According to Bill Lerner, Casino Analyst, Boyd plans a $250 million cash flow from the Station casinos. Fitch and Moody’s, Bond rating agencies are projecting a wait to decide on the status. The investors are confused on whether to accept the offer with Boyd.

In 2007, Station’s major share-holders Frank, Lorenzo Fertitta, and the Colony Capital firm at the company’s peak buy-out boom stated that it will work with reorganization along with Boyd Gaming’s proposal. However, the Colony Capital management refuses to remark on this at present.

During the past decade, Boyd’s and Station were of the major players who were operating casinos in Las Vegas. Due to recession, Station revenues fell by 19% and cash flow by 25% in the last quarter, and February 26, 2009 is the due date to submit Boyd’s profit and loss report.  If Boyd is successful, Station might give up its series of casinos.