It’s bailout D-Day in falling Star Leisure’s | Australian Markets
Embattled Star Leisure has shocked buyers with a pause in trade forward of the release of its half-year financial report, with a repeated warning that with out a white knight it might not have the ability to proceed as a going concern past Friday.
The on line casino operator — which runs casinos in Sydney, Brisbane and the Gold Coast — has for months been desperately trying to find a funding lifeline to remain afloat because it battles a liquidity disaster.
Star was as a result of release its six months accounts to the tip of December this morning however as an alternative entered a trading halt simply earlier than the Australian Securities Alternate opened.
Simply half-hour after pausing trade in its shares — which have misplaced 75 per cent of their worth over the previous yr — Star launched a assertion saying it was persevering with to discover doable options “that might materially increase the group’s liquidity position”.
It expects to obtain “one or more liquidity proposals during the course of today”.
“It is likely that the 1HFY25 report will only be able to be finalised if the company has received liquidity proposals which, after appropriate consideration by the directors, are sufficiently capable of being progressed to finalisation in the context of determining whether the company can continue as a going concern,” it mentioned.
“As noted in the company’s recent ASX announcements, there remains material uncertainty as to the group’s ability to continue as a going concern.”
Star was final week provided a five-year financial lifeline value $650 million from Oaktree Capital Administration after a collection of bruising battles with regulators over scandals at its venues over the previous few years left it on the brink. The NSW Impartial On line casino Fee can also be preserving a close eye on its operations.
The proposal would require approval from the NSW and Queensland governments, and would nonetheless go away the company short of funds earlier than the deal kicked in.
The on line casino operator has not too long ago been in talks with Hong Kong-based corporations offering to buy its 50 per cent share in Brisbane’s Queen’s Wharf leisure precinct, which opened in August. It has already bought off belongings at its Sydney flagship advanced to raise money.
It ended the yr with simply $78m in money out there, dropping more than $8m within the ultimate quarter of 2024.
The Star has been struggling because the fallout from a high-profile money-laundering scandal in 2021 that steered profitable high rollers away from its casinos.
Former executives and board members have additionally been accused of placing revenue above risk and failing to take motion to forestall money laundering in a case introduced by the Australian Securities and Investments Fee that started Federal Court docket hearings earlier in February.
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