St. Louis-based Isle of Capri Casinos Inc to manage 4 Station Casinos
Isle of Capri Casinos Inc. on Wednesday affirmed news by Debtwire that Isle has agreed to manage four Station Casinos Inc. properties if they be spun out of Station’s bankruptcy case.
Isle entered into a “consultancy agreement” with certain lenders to “assist the lenders to be prepared to take over the assets to the extent necessary,” company spokeswoman Jill Haynes said.
The agreement would enable Isle of Capri to operate the properties for the lenders, led by Deutsche Bank, if Station fail to maintain control of them in bankruptcy court.
The agreement covers Palace Station, Boulder Station, Sunset Station and Red Rock Resort.
Isle of Capri is already in the process of being licensed in Nevada because of a deal for a casino in Northern Nevada unrelated to the Station Casinos situation.
Isle has 13 gambling operations in the USA in Black Hawk, Colo.; Lake Charles, La.; Lula, Biloxi and Natchez, Miss.; Kansas City, Caruthersville and Boonville, Mo.; Bettendorf, Davenport, Waterloo and Marquette, Iowa; and Pompano Beach, Fla.
The four Station properties are encumbered by $2.475 billion in debt and are leased by Station from itself, with the lease payments of $249.5 million annually covering the mortgage payment.
Other creditors have attacked the lease arrangement, charging the rent is excessive.
While Station has resisted efforts that it be acquired by Boyd, creditors in the bankruptcy process will have additional opportunities to press for a Station sale to raise cash to cover some of their debts.
Station had no comment Wednesday on Isle of Capri’s deal to manage the four properties. Station has until March 25 to exclusively propose a plan of reorganization.