Embattled Australian gaming operator The Star Entertainment Group has been forced into a trading halt, after failing to publish its half-year results on Friday.
According to a company release, the halt starts on Monday, unless the group is able to lodge its periodic report by end of trading. Otherwise, the suspension will remain in effect until the report is lodged.
This appears unlikely, as the group notes that it can’t publish 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’.
According to sources heard by the Australian Financial Review, the group’s Chief Executive Steve McCann is working to secure over AU$100 million ($62 million) in short-term funding, hoping to keep the company afloat until May.
McCann is reportedly trying to access the AU$60 million ($37.3 million) garnered from the sale of the group’s Sydney events center last month, which is being held in escrow.
The funds, however, will only be released after approval from the New South Wales government.
If released, this would help McCann negotiate with lenders for the additional funding he hopes can prop up the group.
The Star has been warning for months that it has run out of cash, indicating in January that at the end of 2024 it held just AU$78 million ($48.5 million) in available cash.
Despite owing lenders some AU$430 million ($267 million), The Star has not accepted offers both from its joint venture partners in Queen’s Wharf Brisbane (Chow Tai Fook and Far East Consortium) and by funds associated with Oaktree Capital Management.
Blackstone has indicated that it could be interested in an acquisition of The Star upon its entry into voluntary administration.
