Australia’s The Star Entertainment Group has seen a significant reduction in its available cash, dropping to AU$70 million ($43.56 million) as of December 31st, 2024.
In a recent filing with the Australian Securities Exchange (ASX), the company informs that its available cash fell by AU$79 million ($49.16 million) from its last report at end-September 2024.
The group now notes that it ‘continues to explore other liquidity solutions’ aside from working to fulfill conditions to draw AU$100 million ($62.23 million) under the second part of an AU$200 million ($124.46 million) New Facility negotiated to keep the company afloat.
The group has been facing an ongoing financial crunch in the wake of the two Bell inquiries into its suitability to hold a casino license.
The group notes that its reduction in available cash ‘reflects the continued difficult trading conditions’ highlighted in its Annual General Meeting last November, alongside ‘essential capital expenditure […] upfront fees’ linked to its new loan, as well as the first AU$5 million ($3.11 million) installment of the AU$15 million ($9.33 million) fine imposed by the New South Wales Independent Casino Commission (NICC) last October after the results of the second Bell inquiry.
The group is further weighed by ‘significant legal and consulting fees, ongoing transformation and remediation activities, and joint venture contributions’.
The Star’s financial woes became particularly apparent around the opening of its new Queen’s Wharf Brisbane property, which was developed alongside Chow Tai Fook and Far East Consortium – Hong Kong-listed entites who, collectively, are 50 percent joint venture partners in the project.
Back in November, The Star’s leadership affirmed that its remediation plan would allow “meaningful change by the end of March 2025” – a deadline set by the NICC for overseeing operations at its Sydney casino property.
