The Star Entertainment Group is seeking shareholder approval to settle AU$11.9 million ($8.4 million) in outstanding interest through new shares, preserving cash for its casino operations.
The Australian operator’s September 24th AGM notice proposes issuing approximately 105.9 million shares to Bally’s and Investment Holdings, which is controlled by the Mathieson family. Shareholders will vote on the proposals at the October 27th meeting.
The interest relates to convertible notes and subordinated debt issued under the company’s 2025 rescue financing. Although the principal was settled in November 2025, unpaid interest remains outstanding and continues to compound at 9 percent annually.
‘As liquidity remains a key priority for the Company, and in order to preserve cash,’ Star Entertainment said it wanted to settle the liability in full by issuing shares.
Based on the amounts due at the AGM, Bally’s would receive approximately 62.6 million shares to settle AU$7.03 million ($4.9 million), while Investment Holdings would receive 43.4 million shares for AU$4.87 million ($3.4 million). Both issues would be priced at AU$0.1123 per share.
Star Entertainment expects to issue the shares on October 28th if approved. A later issue would require additional shares to cover further interest, while rejection would leave the liability accruing interest until the company elects to pay cash.
Bally’s acquired approximately 38 percent of Star Entertainment in late 2025 by converting its loan into equity following regulatory approval. Investment Holdings held a further 23.16 percent, according to the AGM notice.
Shareholders will also vote on the election of five directors appointed since the previous AGM: chairman Soo Kim, George Papanier, Don Pasquariello, Brooke Lindsay and Grant Bowie. Kim and Papanier are Bally’s nominees, while the other three are classified as independent directors.
A separate resolution seeks approval to grant CEO and managing director Bruce Mathieson Jnr approximately 12.8 million performance rights under the company’s FY26 and FY27 long-term incentive awards, subject to the applicable vesting conditions.
