Star Entertainment receives $650M loan offer to recover
Australian gambling operator Star Entertainment has been offered a $650 million loan from American firm Oaktree Capital Management.Star Entertainment Group is in deep...
Bally’s considers investing in struggling Star Entertainment
According to The Australian Financial Review, U.S. casino giant Bally’s Corporation is eyeing an investment in Australia’s biggest casino operator, Star Entertainment.
Star has been facing serious financial troubles. On January 8, it was announced that the company was rapidly burning through cash and only had a few months of liquidity left. CEO Steve McCann confirmed that the company is in “safe harbor,” a status that protects directors while they try to secure new funding.
Regulatory pressures, falling consumer spending, and unexpected costs from its new Brisbane resort have only made things worse. The company also faces a potential fine from AUSTRAC over compliance breaches.
To stay afloat, Star took $100 million as part of a $200 million loan deal back in December. Moreover, recently, Star received a $650 million loan offer and considered selling assets or finding new investors. U.S.-based Oaktree Capital is among those interested in striking a deal with Star’s lenders.
Bally’s comes next with its experience of turning around troubled businesses and bringing valuable expertise to help them. The company representatives, including Chairman Soo Kim, visited Australia to meet with Star’s management, lenders, and key shareholders. They also visited Star’s three casinos in Brisbane, Gold Coast, and Sydney.
Though Bally’s has never operated in Australia, it runs 19 casinos across 11 U.S. states, along with a golf course and a racetrack. Star’s upcoming financial report will be closely watched as lenders assess its next financial test.
Star Entertainment considers offers for Queen’s Wharf
Australian gambling operator Star Entertainment has announced that it is considering offers for its stake in the newly launched Queen’s Wharf casino project in Brisbane,...
