A group of Station Casinos Inc.'s senior lenders want a bankruptcy judge to name an examiner to investigate whether the company's executives and key backer Deutsche Bank AG are using the Chapter 11 process for their own benefit at the lenders' expense.
Ten banks and investment firms calling themselves the "independent lenders" say an independent examiner is needed to determine whether Station Casinos and Deutsche Bank "sacrificed" the lenders' interests for their own benefit, "as well as for the benefit of out-of-the-money" shareholders who control the company's board of directors, according to court papers filed by the lenders Tuesday.
The independent lenders — whose number includes General Electric Co.'s General Electric Capital Corp., U.S. Bank and BNP Paribas SA — own about 30% of the gaming company's senior secured debt. They exclusively invested in a $900 million "stack" secured by Station Casinos' gaming operations.
