Star Ent. AU$60 million sale, Sydney venue sold to avoid crisis
Struggling 바카라 operator Star Entertainment Group has announced the sale of and associated spaces to Foundation Theatres in a deal worth AU$60 million (35.85 million). The transaction is part of Stars efforts to stave off insolvency, with the sale expected to provide much-needed liquidity.
In an ASX filing, Star confirmed that an exclusivity arrangement and binding term sheet had been signed, though the deal remains subject to regulatory approvals and finalised agreements.
Under the terms, Foundation Theatres will deposit AU$60 million into escrow by 31 January 2025, which will be released to Star upon completion and held in a restricted disposal proceeds account under the companys debt facility conditions.
Star moves to sell non-core assets
Star Entertainments CEO Steve McCann highlighted the companys long standing relationship with Foundation Theatres, referencing its acquisition of the Sydney Lyric sublease in 2011. He described the agreement as part of The Star Sydneys broader entertainment strategy.
The sale of non-core assets is one of Stars few remaining options as it struggles to stabilise its financial position. The company recently admitted that avenues for securing additional funding are limited, having drawn down AU$100 million (59.7 million) in December, leaving just AU$79 million (45.72 million) in available cash as of 31 December 2024.
January 2025 has not been a good month for Star Entertainment Group. Prior to this, Stars shares plummeted by 26 percent to a record low of A$0.13 after the company disclosed its dwindling cash reserves and strained liquidity. The slump reduced its market valuation to AU$430 million (265 million).
Star burned through AU$107 million (66 million) in the December quarter, including the full AU$100 million (62 million) drawdown from its latest debt facility.?
The company cited ongoing trading difficulties, necessary capital expenditure, fees linked to the debt facility, and the first AU$5 million (3 million) instalment of a regulatory fine totalling AU$15 million (9 million) from the New South Wales 바카라 authority.
Cash crunch before April 2025?
The embattled operator has been trying to access the final AU$100 million (62 million) tranche of its debt facility, but several conditions remain unmet. Star admitted that some of these conditions are difficult to satisfy given its current financial position. The company has already borrowed AU$434 million (268 million) at a 13.5 percent interest rate.
The debt facility is accessible only until 9 April 2025, but analysts warn Star could run out of cash before then. Jefferies analysts called securing the second tranche of funding the companys biggest short-term challenge, highlighting rising liquidity risks.
And so, with mounting financial pressure, Star continues to explore further asset sales in a bid to remain solvent.
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