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...
Star Entertainment faces shares suspension
Shares in Star Entertainment have been suspended from trading on the stock exchange after the company’s failure to submit its financial results on time.
The suspension followed Star’s announcement of needing critical financial rescue proposals. Submitted on Friday, February 28, the announcement already hinted at Star’s shares suspension as the company informed about the delay of the financial report and confirmed that it couldn’t submit its accounts until it secures a funding package.
Star stated:
“We need a refinancing commitment that would enable The Star to refinance all the Group’s existing corporate debt, as well as to provide additional liquidity.”
However, later, the company did not provide details on any potential funding offers. Without funding, Star faces the possibility of entering voluntary administration, where independent administrators would manage the company’s affairs, possibly breaking it up and selling assets to pay creditors. Moreover, the company’s crisis also puts almost 9,000 workers at risk.
Andrew Jones from the United Workers Union expressed concerns:
“Star put out a notice to staff on Friday assuring staff that they’ll be paid this week, but that’s yet to be seen.”
Workers, many already struggling with the cost of living, fear pay cuts and further instability. If administrators are appointed, unions hope state governments will help protect jobs.
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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