Boyd, now a creditor in the case after having acquired a small portion of Station's debt, has been trying to purchase some of all of the assets of Station Casinos since February, when it offered $950 million for several of its casinos. Station rejected the offer and filed for bankruptcy protection in July.

Boyd says the latest non-binding offer, which is for all of Station Casinos fee and clear of all liens, claims and encumbrances, represents economic realities that have slashed the company's value. If accepted, creditors and investors stand to suffer billions of dollars in losses. Station Casinos is currently carrying $6.8 billion in debt, including $2.47 billion tied to its top four properties -- Red Rock Resort, Sunset Station, Boulder Station and Palace Station.

Station, which holds assets under PropCo and OpCo divisions, has said its board, advisors and stakeholders will review Boyd's latest offer. Station adds that it has not made a decision to sell as part of the reorganization and did not solicit the proposal. The company's exclusive period to propose a plan of reorganization with the bankruptcy court was recently extended by the court until March 25, 2010. If a compromise isn't reached with lenders by that time, the assets could be divvied up between lenders. Station's top four properties are under the PropCo unit.