Australian gaming operator The Star Entertainment Group, facing significant challenges, announced that it will postpone the release of its annual results by one day after securing an essential AU$200 million ($136 million) debt package.
This financial lifeline comes in the form of a new facility worth up to AU$200 million ($136 million) from its corporate lenders, which will help the casino group navigate ongoing financial difficulties.
The existing AU$450 million ($306 million) facility will be reduced to AU$334 million ($227 million), allowing the company to better manage its cash flow. The AU$200 million ($136 million) financing will be distributed in two phases, with an immediate AU$100 million ($68 million) allocated to address rising costs associated with the development of its new Queens Wharf resort in Brisbane.
This agreement follows extensive negotiations between Star’s chief executive, its lenders, and various state authorities over several weeks. The first tranche of funding is anticipated to be available from late October through December 20, contingent upon certain conditions being met.
The second tranche will impose stricter requirements on Star, including the need to raise at least AU$150 million ($102 million) in additional capital and to provide detailed insights into its long-term strategy.
Star’s operational future remains uncertain following an inquiry that revealed issues related to its leadership and corporate culture, deeming it unfit to run its Sydney casino.
The company, which operates casinos in Sydney, Brisbane, and the Gold Coast, saw its shares suspended from trading on September 2 after failing to submit its fiscal 2024 annual report on time.