The Star Entertainment has confirmed it remains in talks with its banks over debt covenant waivers, saying it rejected lender demands it considered ‘unacceptable’ as the casino group faces a high-stakes standoff over AU$430 million ($278.5 million) in loans.
In a statement on Wednesday responding to media reports, the ASX-listed company said it ‘has been, and continues to be, in discussions with the SFA lender group in respect of potential covenant waivers for September 30th and December 31st 2025’.
It said lenders had proposed terms in exchange for those waivers which were ‘in aggregate, unacceptable to The Star’.
The company added that it plans to lodge unaudited accounts for the six months to June 30th on August 29th, with audited results expected by September 30th.
The reply followed a report in the Australian Financial Review detailing a dispute between Star and lenders, including Washington H Soul Pattinson, Macquarie and Deutsche Bank.
The group is seeking waivers to avoid breaching loan covenants after sharp financial deterioration in recent years. The Star has been hit by a AU$100 million ($64.8 million) penalty in 2022 over money-laundering breaches and remains under regulatory scrutiny.
To shore up its balance sheet, the company has agreed to sell its 50 percent stake in the AU$3.6 billion ($2.33 billion) Queen’s Wharf Brisbane project to its Hong Kong partners and plans to exit Brisbane operations entirely.
At the same time, US operator Bally’s has tabled a AU$300 million ($194.4 million) takeover bid, which has received backing from Star’s board but will require regulatory and shareholder approval.
This month The Star has also ‘entered into binding long-form documentation’ with its JV partners Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC) to dispose of is interest in Destination Brisbane Consortium (DBC).
