[dude66]

Jan. 30 (Bloomberg) -- Station Casinos Inc., whose Las Vegas-area properties include Red Rock Casino and the two-month old Aliante Station, may be on the brink of default, making its private-equity owners a casualty of the largest recorded decline in gambling revenue.

Colony Capital LLC, the Los Angeles private-equity firm that took Station private with the casino company’s founding family in 2007, added more than $2 billion of loans and bonds to Station’s books to complete the $8.8 billion deal. The extra leverage puts Station at risk of breaking terms of bank debt, said Peggy Holloway, an analyst at Moody’s Investors Service.

“From a liquidity perspective, they are on the brink of bankruptcy,” New York-based Holloway said in an interview. “It depends on their ability to negotiate with lenders and willingness to amend the debt.”

article continues:
Bloomberg.com: U.S.

[thetalentedmrdiamonte]

And whoever said before that Las Vegas is "different" and that recessions before never effected Las Vegas? This is going to be a horrible 2009, 2010, and if other recessions serve as a guide, 2011. Maybe longer. However, I've always said Las Vegas needs other industries to buoy it. It just can't rely on gaming as an industry. Detroit's a one industry and look where it got it. Diversification is the key. The only way to do that: streamlined red tape process, low taxes, several transportation lines to move inventory, cheap real estate for office space, and a strong school system for educated labor.

[jfkIII]

yes, but it's a little too late to start diversifying LV during a recession. Sort of like trying to build the roof after the rain has started.

Casinos shutting down in LV will cause a tidal wave...once the first major one goes, they'll start falling like dominoes. Let's just pray that Stations can pull this one out!

[dude66]

Station Casinos rely too heavily on locals for business in outlying areas. That only worked during the boom. Now all those locals are losing their homes and jobs, there no tourists to take up the slack, and Station is screwed as near as I can tell.

[jfkIII]

Originally Posted by dude66

Station Casinos rely too heavily on locals for business in outlying areas. That only worked during the boom. Now all those locals are losing their homes and jobs, there no tourists to take up the slack, and Station is screwed as near as I can tell.

Sad...I liked every Stations casino I've been to...and I think I hit them all except for the Fiesta. I've even hit some of the smaller properties like Barleys. This is not good for LV at all! Just think how many jobs will be affected.

[jpk]

I agree that the Station casinos are nice and local-friendly because of their accessibility off in the suburbs. My hope is that if they go bankrupt that they continue to operate under bankruptcy restructuring like the airlines did.

[kimba01]

Maybe they can get a bailout?

But seriously, I tried to book a room at a couple of them over Valentines (I know that's a busy time, but don't they have zillions of rooms)and a couple were completely booked. They were not cheap either.

I do like the Station casinos for the local feel.

[las vegas drunk]

I am going against the grain but I really hope all the Station casinos go out of business. I would be thrilled if that does happen. They have a crappy attitude as far as I am concerned. Especially Green Valley Ranch and Sunset Station. I am permanently banned from all Station properties because of an incident at the Sunset Station. I did nothing wrong either. This is the only property to ever do such a thing to me.

[dynimagelv]

personal opinion....I dont like, and wont patronize Station properties because they moved their entire reservations department to India....if you want the support of the locals, you should support the locals.

[kimba01]

Originally Posted by dynimagelv

personal opinion....I dont like, and wont patronize Station properties because they moved their entire reservations department to India....if you want the support of the locals, you should support the locals.

Hmmm, interesting. I didn't know that. I would have to agree with you then.

And I agree that the service is the pits at GVR anyway!