Embattled Australian gaming operator The Star Entertainment Group has announced a trading halt, over speculation that the company might no longer be financially viable.
According to a Friday update, The Star is ‘continuing to explore possible liquidity solutions’ and ‘anticipates that it will receive one or more liquidity proposals during the course of today‘.
The group is also expected to publish its financial results for the second half of 2024 today but will only do so if it has received said liquidity proposals and, once determined by directors, whether those prove ‘whether the company can continue’.
If the half-year report is not lodged today, the company’s shares will be suspended from trading starting March 3rd.
The group reiterates that ‘there remains material uncertainty as to the Group’s ability to continue as a going concern’.
On Thursday, the Australian Financial Review reported that The Star was having difficulties in signing off on accounts, due to its weak cash balance and failed attempts at securing financial lifelines. This comes despite multiple offers, including from the group’s main Hong Kong-listed partners in its Queen’s Wharf Brisbane project.
The group is also facing lawsuits by the country’s financial watchdog ASIC – directed at 11 of the company’s former directors and executives. These are based around allegations of leadership failure relating to money laundering and criminal associations for the 2017-2019 period.
