Struggling Star Entertainment's shares suspended on missed earnings deadline
Shares of embattled 바카라 operator Star Entertainment have been suspended from trading on the public markets from March 3 (Monday). This comes after the operator failed to lodge its half-yearly earnings report on 28 February (Friday).
The Australian Securities Exchange (ASX) notified the market of suspension on Monday. In a on Monday, Star confirmed that to disclose its half yearly results, the company needed to refinance its debt. The company’s shares tumbled over 15 per cent on Friday after the company failed to disclose the figures.
The company’s statement read, “The suspension will continue until the 1HFY25 Report is lodged and the ASX determines that the Company’s shares should be reinstated to quotation.” The suspension will continue until the report is lodged and the ASX determines trade can resume.
“The Company is unlikely to be in a position to lodge its 1HFY25 Report unless, and until, it has secured a refinancing commitment that would enable The Star to refinance all of the Group’s existing corporate debt, as well as to provide additional liquidity.”
Bailout offers anticipated
The company announced on Friday that it was anticipating bailout offers but warned that it may not be able to meet the deadline for filing its first-half earnings. In Friday’s ASX filing, released by the company after temporarily halting trading, the company confirmed 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.”
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.
