* Station Casinos sees Chapter 11 exit in 1st qtr 2011
* Group led by Fertitta brothers bid $772 mln for assets
* July 2009 bankruptcy filing, two years after buyout
NEW YORK, Aug 27 Station Casinos Inc said on
Friday it won permission to emerge from Chapter 11 bankruptcy
under a plan putting most assets under the control of a group
led by Chairman Frank Fertitta and his brother, Vice Chairman
U.S. Bankruptcy Judge Gregg Zive in Reno, Nevada, approved
the plan at a hearing, company spokeswoman Lori Nelson said.
Station's still requires approvals from Nevada bankruptcy
regulators before it can emerge from Chapter 11, which it hopes
to do in the first quarter of 2011, she added.
The Las Vegas-based company filed for court protection in
July 2009 after being unable to cope with debt it took on in
2007, when the Fertittas and Colony Capital took the company
private in a $5.4 billion leveraged buyout.
Zive on Aug. 6 approved a $772 million bid by the group led
by the Fertittas for most of Station's assets. Colony and
several banks are part of that group.
"Implementation of this plan will make us a much stronger
and healthier company going forward," Executive Vice President
Scott Nielson said in a statement.
Boyd Gaming Corp (BYD.N), a rival, had sought to buy some
of Station's assets through the bankruptcy process, but dropped
out of a court-supervised auction last month.
Founded in 1976, Station this month said it owns, operates
or has stakes in 18 casinos. [ID:nBW166663a]
The case is In re: Station Casinos Inc, U.S. Bankruptcy
Court, District of Nevada, No. 09-52477.
(Reporting by Jonathan Stempel in New York, editing by Matthew