The Star Entertainment Group says its long-planned exit from the Destination Brisbane Consortium (DBC) is now unlikely to be completed before the November 30th deadline, with CEO Steve McCann confirming several conditions remain unmet and an extension is being negotiated with joint-venture partners.

“As at today’s date, the conditions precedent to the transaction are unlikely to be met by the original sunset date of 30th November 2025”, McCann told shareholders at the company’s annual general meeting (AGM) on Tuesday.

He said the partners had sought to push back the refinancing deadline for DBC debt to March 31st, 2026, which would prolong The Star’s exposure to a parent-company guarantee.

Despite the setback, McCann said the parties remained aligned: “We believe that both The Star and our joint venture partners remain committed to completing the transaction in a timely manner.”

Liquidity pressure and a precarious financial position

The delayed DBC completion comes as The Star continues to operate under severe liquidity constraints. McCann was blunt about the risk environment: “There still remains material uncertainty regarding the Group’s ability to continue as a going concern.”

While the business has taken steps to access additional liquidity — including a AU$300 million ($193.5 million) strategic investment from Bally’s Corporation and Investment Holdings and the sale of non-core assets — the CEO emphasized that the company is still navigating “a precarious financial position”.

The group must also secure further covenant waivers or refinance its senior debt facility before the end of December. “Unless further waivers […] are agreed […] the Group will need to execute a refinancing […] to avoid a default”, McCann said.

The CEO reiterated that rebuilding trust with regulators and regaining casino license suitability remained central to any turnaround.

Delivering on the remediation plan — of which 403 of 578 milestones have been completed — is crucial. “The reinstatement of our casino licenses is critical to improving our performance, attracting and retaining the best people and ensuring ongoing access to capital,” he said.

Progress has been steady but regulators have extended oversight arrangements through 2026. McCann acknowledged the pressure: “The road ahead remains very challenging with many critical milestones yet to be achieved.”

Operating performance still weak but showing early signs of stabilization

The Star’s operational metrics remain heavily depressed. Gaming revenue has been hit particularly hard by regulatory reforms and enhanced compliance systems.

Between FY23 and FY25, revenue fell 30 percent at The Star Sydney and 19 percent at The Star Gold Coast. McCann said earnings deterioration was compounded by remediation spending: “We have incurred significant costs in relation to our remediation program, which has contributed to a combined decline in EBITDA […] of AU$260 million ($167.7 million) over the FY23 to FY25 period.”

However, he pointed to encouraging early signs in FY26, with a 5 percent quarter-on-quarter revenue improvement and a narrowing EBITDA loss. “Sydney performance has stabilized, albeit at depressed levels,” he said, while the Gold Coast showed “early signs of improvement.”

The annual general meeting marked a wider transition for the group, with the conversion of Bally’s and Investment Holdings’ notes set to hand them a combined 61 percent stake and reshape the board.

McCann welcomed the changes: “I look forward to working with [the new directors] in further advancing the turnaround of The Star.”

Despite the extended timeline on major transactions, he sought to reassure stakeholders that management had a clear path forward: “We have a plan, the execution of which requires continued discipline and focus.”