Station Objects to Motion for Investigation

LAS VEGAS-Station Casinos Inc. on Friday objected to the recent bankruptcy court motion by its minority lenders to investigate the decisions being made by Station management and its main lender, Deutsche Bank, for alleged conflict of interest. The operator of off-Strip casinos opened its objection by calling the move an “unfortunate and ill-considered” distraction by “admittedly over-secured” lenders meant to bolster their negotiating position.

“Not only is it expensive and burdensome to the Debtors and their estates, but it is also completely duplicative of…inquiries and investigations already commenced” by the Official Committee of Unsecured Creditors,” Station’s attorneys state in their objection, adding that its management decisions are already monitored by the court. The objection goes on to question the motives of the minority lenders, saying the motion “may be” an abuse of process due to the following facts: