Star Entertainment: Casino lifeline evaporates as | Australian Markets
Embattled on line casino group Star Entertainment is as soon as again on the verge of administration following the withdrawal of a crucial $750 million lifeline.
The company had been in talks with boutique fund supervisor Salter Brothers Capital however suggested the market that the deal was off.
In an ASX announcement on Wednesday, Star stated it had “continued to work diligently with Salter Brothers Capital in relation to the refinancing proposal but has not received a binding debt commitment letter and the refinancing proposal has now been withdrawn.”
Without the deal, The Star is now going through a looming disaster.
It stays unable to lodge its half-year financial report for the period ended 31 December 2024 and admits “there remains material uncertainty as to the group’s ability to continue” as a going concern.
According to the Australian Financial Review, Star had enough money to run operations for up to a different week.
That leaves the company with just one potential suitor: US-listed Bally’s Corporation, which submitted an unsolicited, non-binding offer on 10 March to inject at the least $250 million by taking a 50.1 per cent stake.
Bally’s operates 19 casinos throughout 11 US states, as nicely as worldwide holdings together with the Aspers Casino in Newcastle, UK.
The company has flagged a willingness to “explore alternative structures” and doubtlessly scale up the scale of the transaction, relying on Star’s wants.
In the March 10 offer to the Star board, Bally’s chairman Soo Kim, argued the deal presents more than simply funding.
“Our proposal delivers more than capital: Bally’s would partner with Star in deploying our significant operating experience in turning around casino assets and growing highly successful casino businesses globally.”
Star continues to own casinos in Sydney, Brisbane and the Gold Coast, however in early March needed to promote a half share of its newly opened Brisbane on line casino at Queen’s Wharf to Hong Kong three way partnership development companions Chow Tai Fook Enterprises and Far East Consortium for $53 million.
Star additionally revealed in early March that it had entered into an settlement with King Street Capital Management for a $250m short-term debt facility.
More to come back…
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