The news comes the same day the company revealed to the SEC that it elected not to make a scheduled $9.9 million interest payment due March 15, 2009 to holders of the company's $300 million 65/8% Senior Subordinated Notes due 2018, and that the grace period with respect to the payment ends on April 14, 2009. Previously, the company elected not to make a scheduled $24.1 million interest payment that was due on March 1, 2009 to holders of the Company's $700 million 67/8% Senior Subordinated Notes due 2016, and that are subsequent forbearance agreement restricts the related bondholders and senior lenders from exercising remedies before April 15, 2009.

In February, Station Casinos and some of its lenders offered up a prepackaged bankruptcy proposal that would pay investors 10- to 50 cents on the dollar in secured notes and cash in exchange for some $2.3 billion of existing bonds. Affiliates of the Fertitta family and Colony Capital have agreed to put up as much as $244 million in new capital to maintain their current interests in the company, according to Station Casinos. The deadline for bondholder to approve the deal is April 10.

Later that month, Boyd Gaming made a non-binding $950-million offer for several of the company's casino properties, saying it "would present a superior recovery to the unsecured creditors of Station versus the current Exchange Offer." On March 2, Station announced the forbearance agreement related to the 2016 subordinated notes and said it is in the best interests of the company and its stakeholders to proceed with the current restructuring plan rather than entertaining asset sales.