In an update to the Australian stock market this morning, The Star said the refinancing proposal, which would have provided the business with $940 million in debt capacity had been withdrawn.
Last week The Star had said it was expecting to receive a formal refinancing offer on Monday this week, via a debt commitment letter, but this did not eventuate.
“The withdrawal of the refinancing proposal follows extensive engagement by The Star with Salter Brothers Capital and relevant third parties, including state governments and regulators,” said The Star’s statement this morning.
“As a result of that engagement, it became apparent that it was unlikely that a number of the conditions precedent to the refinancing proposal would be able to be satisfied, either at all or in sufficient time to address the current liquidity needs of the company.
“In particular, lender requirements for specific priority arrangements and enforcement rights in relation to their proposed security over non-gaming assets of The Star could not be met.”
The Star has been warning since the start of the year that a lack of cash is threatening its ability to continue operating.
This morning The Star reiterated it would not be posting its results from the first half of the financial year until it had locked in a viable refinancing deal, meaning the company will remain suspended from trading on the ASX.
The Star also said it was now considering an offer from international casino operator Bally’s, received in early March, which would see Bally’s provide $250 million in exchange for a majority 50.1 per cent stake in The Star.
The integrated resort operator has made several deals to improve its liquidity and financial position in 2025, including selling its Event Centre in Sydney to Foundation Theatres for $60 million and exiting the $3.6 billion Queen’s Wharf precinct in Brisbane, in which it had a 50 per cent stake. As part of the deal relating to Queen’s Wharf, The Star has gained full ownership of The Star Gold Coast.
Throughout its portfolio, The Star controls a significant inventory of premium hotel rooms and event space, although its event space footprint has been diminished by the two deals it has made this year in relation to its Brisbane and Sydney assets.
