Star Entertainment secures $53M lifeline
Australian gambling operator Star Entertainment sells a 50% stake in Brisbane’s Queen’s Wharf development to its Hong Kong-based partners, Far East Consortium and Chow Tai...
Star receives $250M lifeline from Bally’s Corporation
U.S. casino giant Bally’s Corporation has offered a $250 million funding package to Star Entertainment.
For a long time, Star has been struggling with financial issues and failed to submit its earnings report, resulting in shares suspension. As of January 8, reports revealed that the company was depleting its cash reserves quickly, with only a few months of liquidity remaining.
As a result, Bally’s considered investing in Stars back in late February. Bally’s proposal involves underwriting convertible notes, potentially giving it a 50.1% stake in Star.
Bally’s Chairman Soo Kim wrote:
“In short, we firmly believe that our approach—as outlined in this letter—of new long-term capital plus operational track record will unlock the best alternative for Star and its shareholders. We would also be happy to explore alternative structures that would similarly preserve value for all key constituents, including regulators, creditors, equity holders, and employees.”
Star has already secured $250 million from U.S. hedge fund King Street Capital and plans to sell its Queen’s Wharf stake in Brisbane. If Bally’s deal moves forward, it would value Star at about $500 million, which is a significant drop when compared to a $3.5 billion valuation in 2021.
The Star said its board is considering the offer, but it is not guaranteed to be accepted.
Next to Bally’s proposal, Star considers other funding options, including a $940 million debt refinancing proposal from an unidentified U.S. investor and a $650 million refinancing offer from Oaktree.
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...
