Station Casinos Inc. affiliates
including Fiesta Station Inc. filed for bankruptcy protection to
implement an asset sale that is part of the parent company’s
reorganization plan.

Fiesta Station listed assets of as much as $500 million and
debt of more than $1 billion in a Chapter 11 petition filed
yesterday in U.S. Bankruptcy Court in Reno, Nevada. Green Valley
Ranch Gaming LLC and 25 other related companies also sought
court protection.

Green Valley Ranch Resort, Spa Casino in suburban Las
Vegas, a joint venture of Station Casinos and Greenspun Corp.,
will be acquired for $500 million by a group led by Fertitta
family, Station Casinos said last month.

Green Valley Ranch will become a majority-owned part of a
restructured Station Casinos, which expects to exit
bankruptcy protection this year with most of its properties
controlled by the existing owners. Station Casinos is being
reassembled by Chairman Frank Fertitta; his brother, Vice
Chairman Lorenzo Fertitta; and their partners, which include and
Tom Barrack’s Colony Capital LLC and some lenders.

Station Casinos sought bankruptcy protection in July 2009
after its debt was increased by a November 2007 leveraged buyout
by the Fertittas, who founded the company, and Colony Capital.
The court confirmed the reorganization plan in August.

The case is In re Fiesta Station Inc., 11-51205, U.S.
Bankruptcy Court, District of Nevada (Reno). The case will be
jointly administered with the main case, In re Station Casinos
Inc., 09-52477, U.S. Bankruptcy Court, District of Nevada
(Reno).

To contact the reporter on this story:
Dawn McCarty in Wilmington at
dmccarty@bloomberg.net.

To contact the editor responsible for this story:
John Pickering at
jpickering@bloomberg.net.