1 day Ago By Colin Kruger
Star Entertainment has confirmed it failed to secure a $940 million funding lifeline from investment company Salter Brothers needed to ensure its survival, putting it at risk of collapse yet again. Star said it is seeking funding from other sources, including a proposed equity injection from US casino group Bally’s Corporation, but won’t say how long it has before it runs out of cash. “The withdrawal of the refinancing proposal follows extensive engagement by the Star with Salter Brother Capital and relevant third parties,” Star said in a statement to the ASX on Wednesday.
Star said there remains “material uncertainty as to the group’s ability to continue as a going concern”. Star has survived to this point after cutting a deal with its Brisbane casino partners to hand the operation over to them in return for a cash payment of $35 million and increased exposure to the properties surrounding its profitable Gold Coast resort. It still only gave Star weeks to secure the longer-term funding plans – a $750 million refinancing proposal with Salter – needed to stay afloat.
The plan was for a $250 million bridging finance facility to underpin its funding until the end of April, while a proposed financing proposal with Salter was put in place, which could provide up to $940 million in debt capacity. Star confirmed that the latter is needed to ensure its long-term survival and for Star’s board to sign off on its financial accounts and allow its shares to trade again..
