SGR: ASX Star to keeps the light on after last-minute deal
Star chief executive Steve McCann has unsuccessfully tried to coax lenders, state governments and investors into giving the embattled casino operator the time and cash needed to work through its challenges. Embattled casino operator Star Entertainment has warned that it faces "material uncertainty" over its ability to stay afloat unless it finds a solution to its worsening financial woes, sparking a further drop in the company’s share price. Shares in The Star Entertainment Group Limited ("Star") tanked last week after their first day back on the ASX in almost a month. This ended a prolonged trading halt further aggravated by a slap-on-the-wrist ASX suspension for failure to provide timely financial accounts.
A 2022 NSW inquiry found damning evidence of money laundering and counter-terrorism failings at the groups’ Sydney casino while a 2024 probe found more breaches. The casino group was once worth billions of dollars but has since been slapped with fines totalling more than $210 million and licence suspensions after money laundering allegations. The Star has been in a trading halt since the end of February after being unable to file its half-year financial report without a refinancing plan to save it. Owned by American financier Soo Kim, a self-described corporate fireman, Bally’s specializes in rescuing casinos from financial distress and turning them profitable. The group’s board will now seek for all shareholders to agree unanimously to the deal as it is within their best interests and will unlock the remaining Bally’s contribution, the ASX statement said. Star is exploring a possible injection of $100 million by its largest shareholder Bruce Mathieson and if this occurs, Bally’s contribution would drop to $200 million.
Before signing the accounts, a board of directors must be satisfied that the company is a "going concern" – that it can pay its debts when they fall due.
Star chief executive Steve McCann has unsuccessfully tried to coax lenders, state governments and investors into giving the embattled casino operator the time and cash needed to work through its challenges. Embattled casino operator Star Entertainment has warned that it faces "material uncertainty" over its ability to stay afloat unless it finds a solution to its worsening financial woes, sparking a further drop in the company’s share price. Shares in The Star Entertainment Group Limited ("Star") tanked last week after their first day back on the ASX in almost a month. This ended a prolonged trading halt further aggravated by a slap-on-the-wrist ASX suspension for failure to provide timely financial accounts.
A 2022 NSW inquiry found damning evidence of money laundering and counter-terrorism failings at the groups’ Sydney casino while a 2024 probe found more breaches. The casino group was once worth billions of dollars but has since been slapped with fines totalling more than $210 million and licence suspensions after money laundering allegations. The Star has been in a trading halt since the end of February after being unable to file its half-year financial report without a refinancing plan to save it. Owned by American financier Soo Kim, a self-described corporate fireman, Bally’s specializes in rescuing casinos from financial distress and turning them profitable. The group’s board will now seek for all shareholders to agree unanimously to the deal as it is within their best interests and will unlock the remaining Bally’s contribution, the ASX statement said. Star is exploring a possible injection of $100 million by its largest shareholder Bruce Mathieson and if this occurs, Bally’s contribution would drop to $200 million.
Before signing the accounts, a board of directors must be satisfied that the company is a "going concern" – that it can pay its debts when they fall due.