Star Entertainment faces liquidity uncertainty, may miss earnings deadline
Embattled 바카라 operator Star Entertainment Group has announced that it is anticipating bailout offers but warned that it may not be able to meet the deadline for filing its first-half earnings, which is due by 28 February 2025.
In an Australian Stock Exchange (ASX) filing, released by the company after temporarily trading, the company it is “continuing to explore possible liquidity solutions that might materially increase the group’s liquidity position, and anticipates that it will receive one or more liquidity proposals during the course of today.” The company’s statement confirms that these offers will play a key role in determining if the company “can continue as a going concern.”
If the company is unable to lodge its half-yearly earnings report by 28 February, trade in its shares will be suspended form 3 March. The suspension will continue until the report is lodged and the ASX determines trade can resume. The company has seen a dramatic fall in its share value on Friday, plummeting by 20 percent to just 10 Australian cents, signaling a loss of investor confidence.
Financial lifeline offered to Star
Earlier this month, Star received a $650 million financial lifeline over five years by Oaktree Capital Management. The operator said it was considering the funding by the California-based firm, majority owned by Canadian giant Brookfield Asset Management, which deals in what is known as distressed debt. This deal could provide the company with the breathing room it needs to recover from its ongoing battles with regulators and its financial struggles. The proposal, requiring approval from the New South Wales (NSW) and Queensland governments, would still leave the company short of funds before the deal kicks in.
This comes as Star Entertainment has been under pressure for months, dealing with regulatory fines, failed asset sales, and dwindling cash reserves. The company recently reported that its cash balance dropped to AUD 79 million by December 2024, down from AUD 150 million just six months earlier. Additionally, Star has already used half of its AUD 200 million debt facility, leaving limited room for manoeuvre.
The operator has been in talks with Hong Kong-listed partners, Chow Tai Fook Enterprises Limited (CTFE) and Far East Consortium International Limited (FEC), have shown interest in acquiring the controlling 50 percent stake in the Destination Brisbane Joint Venture (DBC) which owns The Star Brisbane integrated resort. The Star the proposals, which have now been knocked back. The company that it has received the proposals and concluded “that none of the proposals have provided sufficient value for The Star.”
