Australia’s troubled Star Entertainment announced on Wednesday that it will delay its annual results release to Thursday, following the acquisition of a vital debt package. This funding is critical for the casino operator as it navigates ongoing financial challenges.
The gaming company’s lenders have agreed to a new facility worth up to A$200 million (approximately $137.44 million), which will reduce its existing A$450 million facility to A$334 million. The financing will be issued in two parts, beginning with an immediate A$100 million to address escalating costs at its new Queens Wharf resort in Brisbane.
This deal materialized after extensive negotiations involving the company’s chief executive, its lenders, state authorities, and other relevant parties. The first tranche of funding is expected to be accessible, pending certain conditions, from late October through December 20.
The second tranche will come with additional stipulations, requiring Star to raise at least A$150 million in extra capital and to provide insights into its long-term strategy.
Star’s prospects are precarious following an inquiry that highlighted significant issues regarding its leadership and corporate culture, leading to findings that it is currently unfit to operate its Sydney casino. The company, which also owns casinos in Brisbane and the Gold Coast, had its shares suspended from trading on September 2 due to a failure to submit its fiscal 2024 annual report on time. Shares are anticipated to resume trading later this week.
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