tag:blogger.com,1999:blog-8841356013250880291.post7987467372346874407..comments2024-03-15T17:03:45.018-07:00Comments on Las Vegas Blog: Steve Friess' VEGAS HAPPENS HERE: And the dominoes begin to fallTHE STRIP PODCASThttp://www.blogger.com/profile/03593322167326380577noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8841356013250880291.post-87729324292775842682009-03-19T10:35:00.000-07:002009-03-19T10:35:00.000-07:00Four Station properties (including Red Rock) are e...Four Station properties (including Red Rock) are encumbered with $2.5 billion in mortgage-backed securities. So any prospective buyer of them has to ask themselves whether those four casinos are generating enough revenue to support that debt load (unless you buy ALL of Station and spread the risk). At this time, the answer would be, "No."<BR/><BR/>David McKeeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8841356013250880291.post-30737670621233333382009-03-18T19:30:00.000-07:002009-03-18T19:30:00.000-07:00The issue for Station isn't pride. It is what is ...The issue for Station isn't pride. It is what is going to come out of the bankruptcy in terms of an operating entity. Here is where the interests of management and the investors will clash, and will be decided in front of a judge. If Boyds offers its creditors (the fulcrum class - those who get equity) something the creditors prefer say cash now vs. equity in a reorganized Stations, than Boyds will prevail. Stations, however, will have some options including selling off some properties if they can find buyers in order to reduce the debt and make them more viable coming out of bankruptcy (viability will be based on the dollars received contrasted with how much cash flow from the sale of the properties in contrast how much cash flow those properties generate). If Boyds is patient and MGM creditors are not, Boyd might get the Bellagio and not have to worry about Echelon. <BR/><BR/>SGAnonymousnoreply@blogger.com