Australia’s embattled The Star Entertainment Group could be offloading its share in Queen’s Wharf Brisbane to its Hong Kong-listed partners in a desperate bid to salvage the company from bankruptcy.
According to reports, Chow Tai Fook and Far East Consortium have put forward a deal that would allow for an AU$50 million ($31.66 million) injection that could potentially save the company from going into administration.
The deal would allow the two Hong Kong-based conglomerates to take control of the casino, which they are already 50 percent owners in, as well as being investors in The Star itself. Each company holds a 25 percent stake in Queen’s Wharf Brisbane.
According to The Australian, coal baron Chris Wallin has offered The Star a AU$200 million ($127 million) bridging loan until the company can finalize the sale of its QUeen’s Wharf stake.
On Friday, The Star entered a trading halt again, after failing to publish its half-year results, in contradiction of stock exchange rules.
The group noted that it would only publish the results once ‘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’.
The group’s Chief Executive Steve McCann has been trying to secure some AU$100 million ($62 million) in short-term financing, including AU$60 million ($37.3 million) from the recent sale of its Sydney events center, however this requires approval from the New South Wales government.
The Star indicated that as of December 31st it only had AU$78 million ($48.5 million) in available cash.
However, it has reportedly rejected multiple offers – including from its Hong Kong partners and Oaktree Capital.
