NEW YORK (Reuters) – Station Casinos Inc said in a court filing on Wednesday it plans to file for bankruptcy on or before April 15 as part of an attempt to reorganize its debt.
The company said it is currently working on a so-called prepackaged plan of reorganization. In a prepackaged Chapter 11 case, negotiations with debtholders are completed before the company files for bankruptcy, helping the company restructure more quickly and with less disruption.
Details of the company’s plan came in a March 16 court filing in the U.S. District Court in Nevada, which opposed a motion by plaintiff S. Blake Murchison to halt its efforts to restructure more than $5 billion in debt.
The plaintiff claims that a prepackaged plan will render his notes useless since the agreement would result in institutional holders securing priority over other bond holders, according to court filings.
Station Casinos opposes the plaintiff’s motion and said the claim is “totally false.”
(Reporting by Jonathan Stempel and Chelsea Emery; Editing by Tim Dobbyn)