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,...
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 financial trouble and may enter administration within a week. With cash reserves running low, the casino company has been struggling for months, burning through $107 million in the last quarter alone. As of December 31, it had just $78 million left. To stay afloat, Star recently sold its Sydney casino event space for $60 million and rejected multiple offers for its 50% stake in Brisbane’s Queen’s Wharf project.
If accepted, the proposed $650 million deal from Oaktree would be provided through two debt facilities over five years. However, it comes with strict conditions, including regulatory approvals from New South Wales and Queensland, as well as lender agreements.
Star told shareholders:
“The Board of The Star will consider the proposal.”
In December, Star secured $100 million as part of a $200 million loan deal. However, to access the remaining $100 million, the company must meet strict conditions, including raising an additional $150 million in a risky type of loan known as subordinated debt.
Meanwhile, Star’s share price has collapsed, dropping from more than $5 in 2018 to just 12 cents.
Star Entertainment sells Sydney event complex to stay afloat
Star Entertainment Group is struggling financially and has sold part of its Sydney event complex and other spaces for $60 million to Foundation Theatres.This move comes...
