In reviewing Boyd's indication of interest letter, the Board considered, among other factors, the non-specific, non-binding and highly conditional nature of the Boyd proposal, the risks to the Company in sharing sensitive and confidential information with a significant competitor, and the uncertainties and timing risks associated with pursuing the proposal, including the feasibility of obtaining necessary third party consents and required regulatory, antitrust and other governmental approvals. The Board also considered the potential harm that would result to the Company's stakeholders if such a proposal was delayed or could not be completed, whether as a result of the foregoing factors or Boyd's potential inability to perform due to its own financial position.
The Board also considered the potential for harm if such a proposal was delayed or could not be completed, "whether as a result of the foregoing factors or Boyd's potential inability to perform due to its own financial position," and ultimately determined that it is in the best interests of the Company and its stakeholders to proceed with the current restructuring plan, Fertitta wrote. "Should circumstances change, we will contact you," he concluded.
Boyd's argument for Station Casinos considering the offer was that it "would present a superior recovery to the unsecured creditors of Station versus the current Exchange Offer." Station's would-be prepackaged bankruptcy offers to 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 forbearance agreement Station Casinos reached with some of its lenders and debt holders to delay its debt restructuring expires April 15. The deadline for note holders to vote on the prepackaged bankruptcy plan is April 10, having just been extended from Monday, March 2.
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