How to Cure Station Casinos: Gamblex

by Johnny Debacle

Running this company has failed and the company has filed for bankruptcy protection. It’s time for management to roll the dice. Literally. They need to take their entire capex budget to the craps table and bet it on the Six to Win. Or better yet the No Pass Line. I don’t get why they haven’t thought of this. It’s called Gambling Expenditures or Gamblex. It can be a positive amount, but generally it’s a negative number on the cash flow statement. The owners’ equity checks are already toast, so what do they have to lose?

Worst case they go bust and they screw their debtholders, but who cares about those morons who signed up for a convoluted structured deal for a company run by certifiable madmen? And shouldn’t they expect the Fertitas to do something like gamble all the capex money in a dice game? That is why you do due diligence — to avoid providing debt financing to people who are certifiable madmen.

Best case, they win and get the opportunity to double down, which of course they’d need to do again 2 or 3 times. Station should act like responsible irresponsible managers they are and pour all the cash they can into gamblex.

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