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The Star Entertainment Group, owner of The Gold Coast’s Casino, manages the Gold Coast Convention and Entertainment Center and has casinos in Brisbane and Sydney, is caught in a financial black hole that threatens its future.
The company had been in conversations with Salter Brothers Capital Australian property that had offered a debt installation of up to $ 940 million to plug the open financial wounds of Star, but the supply of help has now been withdrawn.
However, an offer from the US giant corporation Bally, which has and operates 19 casinos in 11 US states, is still in the mixture.
Bally’s agreement would imply a capital increase of at least $ 250 million after the issuance of convertible notes, convertible into at least 50.1 percent of the completely diluted ordinary shares of Star, to the existing senior lenders of Star.
In a statement to the Australian Stock Exchange on Wednesday, the STAR entertainment group confirmed that the capital agreement of Salter Brothers would not continue.
“The star has continued working diligently with Salter Brothers Capital in relation to the refinancing proposal, but has not received a letter of binding debt commitment and the refinancing proposal has now retired,” said the statement.
“The withdrawal of the refinancing proposal follows the extensive participation of the star with Salter Brothers Capital and relevant third parties, including state governments and regulators.
“As a result of that commitment, it became clear that several of the conditions preceding the refinancing proposal could be satisfied, either at all or in the long time enough to address the current liquidity needs of the company.”
The star said he continued negotiating with other parts, including Boly’s Corporation.
“However, there is still material uncertainty about the group’s ability to continue as a company in progress,” said the company.
The Star Entertainment Group has staggered from one crisis to another since a money laundering scandal broke out in 2021.
The Independent Casino Commission of NSW heard evidence of money laundering, links with organized crimes and fraud. The star received a fine of $ 15 million and is now operating with government manager, Nick Weeks, directing the operation.
An investigation of 2022 Queensland that Star was “inadequate to have a license.” Star Gold Coast had to suspend his casino license for 90 days since December 20, 2024, but the Queensland government postponed its decision.
Star Entertainment Group shares have been suspended since Monday, March 3, after the company could not submit its half -year report before the market deadline.
The Star Entertainment Group uses 9000 people on their sites.
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