Fertitta Family to become main shareholders in Station Casinos

Station CasinosFrank and Lorenzo Fertitta, the sons of the founder of Station Casinos the late Frank Fertitta Jr. plan to buy the shares in the company that are owned by JP Morgan Chase Bank for 73 million dollars. This purchase will make the Fertitta family once again the majority stake holders in the company with a holding of 60%.Station Casinos is a gaming company that was founded in 1976 by Frank Fertitta Jr. when he opened the Bingo Palace which later became the Palace Station. The company went public in 1993 but in 2007 was no longer listed on the New York Stock Exchange when it was privatised as the Fertitta brothers Frank and Lorenzo bought all the company’s existing shares. In 2009 the company filed for bankruptcy. It had debts of over 6 million dollars but by the end of 2011 it had reduced this debt to 2.5 million dollars. When the company emerged from bankruptcy in 2011 the Fertittas again took control of the 18 casinos in the group.The shares belonging to JP Morgan Chase which are to be bought by the Fertittas in a multi million dollar deal make up 15% of the company. These shares were acquired after Station Casinos filed for bankruptcy  in 2009 and its debt was changed into equity. Another 15% is owned by former bond holders. 25% belongs to Deutsche Bank and the Fertitta brothers own 45%. So along with the 15% owned by JP Morgan Chase and their own 45% they will be majority stake holders after the proposed purchase with 60% of the company. However this deal is dependent on the Fertittas being granted the Nevada gaming licence for which they have applied. (See article: Fertitta Interactive Applies for a Nevada Gaming Licence). Fertitta Interactive which is owned by Frank and Lorenzo fertitta is an online gaming company and the brothers have applied for the Nevada gaming licence to prepare for the time when intra state online gaming may become legal in the United States. Fertitta Interactive hopes to be one of the first gaming companies in the United States to offer a real money online poker room.

If the Fertitta company is granted a Nevada gaming licence the Station Casinos group will benefit greatly as the Fertitta brothers Frank and Lorenzo Fertitta will once again have a majority holding in the company founded by their father Frank.

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