Crisis to blame for failure of Station buyout
Special committee of Station Casinos board of directors reached a conclusion that the collapse of the company nearly $6 Billion buyout was
due to economic crisis.
The committee stated that noone can be blamed for the failure of the plan. Foundings:
1. The company wa not insolvement and, what's more, didn't become insolvement in the aftermath of the buyout.
2. Financial projections were appropriate, but the economic surroundings caused significant deterioration of the actual performance.
Debtholders in a recently bought-out company can allege "fraudulent conveyance" when they believe the new company is undercapitalized and unable to meet future obligations because of the buyout.