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Real estate investment trusts

Station Casinos and Crescent Real Estate Equities Engage in Ongoing Litigation

Strategic Insights

— 1 min read

The dispute between Station Casinos Inc. and Crescent Real Estate Equities Co. has escalated into a high-stakes legal battle, with both sides trading blows in separate lawsuits. The latest development came when Station Casinos revealed that it had amended its Nevada lawsuit against Crescent, seeking damages of over $400 million. This move follows Crescent's announcement that it was withdrawing from the merger agreement, which had been proposed in January at a value of $635 million plus assumption of $919 million in debt.

Key Takeaways:

  • Station Casinos is seeking damages of over $400 million from Crescent Real Estate Equities Co. in a revised Nevada lawsuit.
  • The dispute stems from Crescent's withdrawal from the merger agreement, which was approved at a value of $635 million plus assumption of $919 million in debt.
  • Station Casinos' high debt load, $1 billion as of June 30, is seen as a major problem for the company.
  • The company's Missouri operations are experiencing difficulties, with competition from Riverport Casino Center cited as a significant challenge.
  • Station Casinos has initiated expansions of two of its Las Vegas properties at a cost of $96 million, despite Crescent's withdrawal from the merger agreement.
  • Prefore is no longer held up by creditors' complaints, as many of Station's creditors are supposed to be paid off by Crescent.
  • Station Casino's share price has dropped significantly, hitting a 52-week low of $5.68 3/4 on Friday.

Statistics:

  • Station Casinos' debt load as of June 30 stands at $1 billion.
  • The value of the proposed merger agreement is $635 million plus assumption of $919 million in debt.
  • The cost of Station Casinos' expansions of two Las Vegas properties totals $96 million.
  • The company's 52-week low share price was $5.68 3/4, while its 52-week high was $16.31 1/4.

Sources:

  • "Station Casinos Amends Suit Against Crescent" - Exact wording from the original text.
  • Station Casinos' press release announcing the revised lawsuit against Crescent - No exact date provided in the original text.
  • Factiva database - Source of information on Station Casinos' share price and market performance.
  • Crescent Real Estate Equities Co. press release announcing the merger agreement - Exact wording from the original text, although no date is provided.

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