Star Entertainment: Casino operator's shares plummet after trading halt, company on brink of collapse with 'material uncertainty' about future 43 views

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Star Entertainment: Casino operator’s shares plummet after trading halt, company on brink of collapse with ‘material uncertainty’ about future

On 5 April 2016, eligible shareholders were sent a letter together with a Share Retention Form (for the Small Holding Sale Facility) or a Sale Instruction Form (for the Voluntary Share Sale Facility), and Terms and Conditions for the relevant share sale facility. The Star Entertainment Group announced on 5 April 2016 share sale facilities that provided eligible small shareholders the opportunity to sell their shares without incurring any brokerage or handling costs. Star, which runs three casinos across the two states, has been embroiled in a worsening financial crisis for months, amid poor gaming turnover at its casinos, higher regulatory costs following a run of scandals, and the move to cashless gaming in NSW, with Queensland to follow. More than 8000 jobs hang in the balance as teetering casino operator Star Entertainment is on the brink of financial collapse, with its board in last-ditch talks late on Friday to find the cash needed to keep the company afloat.
“The Queensland government would then conduct a rigorous process to license a new, financially sound, and compliant operator for the casino.” The Queensland government has indicated it wants a casino to continue operating at Queen’s Wharf but won’t offer financial support or concessions to Star. Just a few days later, Star reached a deal with US casino giant Bally’s for at least $250 million in exchange for a controlling stake in the company. In January this year, the company told the ASX it had just $79 million left in available cash and had burned through $70 million since the end of September. At the time of writing, Star shares are trading at 13 cents.
Mr Hughes said Star would have to address the “cash burn” of future investments in Queen’s Wharf, particularly with a possible AUSTRAC penalty hanging above them. Star is also facing potential penalties after a 2021 investigation by Australia’s financial intelligence agency (AUSTRAC) and the New South Wales Independent Casino Commission, found it breached anti-money laundering regulations. He said the company’s options are “limited” and a “Hail Mary” to get the joint venture partners back at the table would be front of mind for its executives. In its quarterly update posted to the ASX on Wednesday, the company flagged a deal was “unlikely” to go through before the July 31 deadline. The heads of agreement was terminated as a result, and Star will retain its 50 per cent equity in Destination Brisbane Consortium (DBC) and Destination Gold Coast Consortium, as well as the Treasury hotel in Brisbane. Embattled casino operator Star Entertainment will be forced to pay about $41 million to overseas investors after failing to meet a deadline to offload its stake in Brisbane’s Queen’s Wharf development.
The Trans and gender-diverse communities are starting to feel vulnerable, so let’s continue to work on making The Star a safe and inclusive place for everyone, esp., for trans and gender-diverse team members. I have been part of the company for over 21 years, serving in various capacities. For three decades, our Pyrmont foreshore precinct, now known as The Star Sydney, has been a pillar of hospitality and entertainment in Sydney’s CBD.
In March 2018, The Star opened the all-suite luxury hotel tower, The Darling. Perched 37 metres above street level, a 12,000sqm open-air Leisure Deck delivers an impressive mixed-use space for hotel guests and the public to enjoy. As a cornerstone of city tourism and nightlife, The Star delivers a memorable Australian casino experience—whether for high-stakes play, gourmet indulgence, or evening events.
Administrations can see a company restructured or traded out of its woes, candy96.fun sold off to new owners, or even totally liquidated if the business is deemed unviable. The Star is one of several casinos owned by Star Entertainment Group. “We want the casino to continue but they need to sort out their finances, and we won’t be bailing them out,” Penny Sharpe said on Monday. “We’re not in the business of being concerned about the corporate suits who sit around a company. “Our focus is on the people who work there, not on the company,” David Crisafulli told reporters last week. In Queensland, where Star runs casinos in Brisbane and on the Gold Coast, its new premier says the government will try to ensure thousands of workers don’t lose their jobs and “the place stays open”.
Insolvency group FTI has been briefed to assume management control of the company. They have refused to sign off on the accounts, which has put the group in breach of its financial reporting obligations, preventing it from resuming trade on the Australian Securities Exchange. Star’s CEO Steve McCann is still searching for a deal to refinance the company’s loans to prevent it from collapsing. The struggling casino operator was suspended from trade on the ASX on Monday. While it would be a cleaner deal than McCann’s complex refinancing, it would require probity checks of all 19 of Bally’s casinos, which could take months.