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.
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Star Entertainment awaits critical financial rescue proposals
Australian gambling operator Star Entertainment is expecting to receive financial rescue proposals by the end of the day.
In recent years, Star Entertainment has been facing serious challenges dealing with legal issues around anti-money laundering violations and expensive compliance upgrades. These problems, combined with lower consumer spending, have seriously affected the company. Last year, the state chose not to take away Star’s license to operate in Sydney; instead, it allowed the company to continue with a small penalty of A$15 million.
Moreover, Star Entertainment now may also not be able to submit its earnings report on time, which could lead to a suspension of its shares from the stock market. Before Star can finalize its earnings report, its board needs to review these proposals and decide whether the company can stay afloat.
New South Wales state energy minister Penny Sharpe told reporters:
“Star has to maintain itself as a viable casino; that’s something that they have to do. We’ve obviously been working with them over a period of time on a range of issues, including the importance of the employment that is there, and will continue to do so.”
Star’s stock is set to significantly drop, now worth only 10 Australian cents per share. Earlier, Star received a $650M loan offer from American firm Oaktree Capital Management. If the earnings report isn’t filed by today’s deadline, trading of Star’s shares will be suspended starting Monday until the report is filed and trading can resume.
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...
