Any closure would also severely affect neighbouring businesses, including cafes and hairdressers that rely heavily on those drawn to, and staying at, the gaming precinct. Its shares plummeted by more than 15 per cent after the trading halt was lifted on Friday morning. Only a white knight can save the casino operator from becoming Australia’s biggest corporate collapse since Virgin Australia in 2020. Star's recent financial results were delayed by liquidity concerns and the company's shares were suspended from the ASX. The company subsequently secured fresh funding, published its numbers and returned to trading in volatile style.
Remember that individual shares or investments should only be considered as part of a broader investing strategy. So first is the cyclical downturn in discretionary spending that's weighing on main floor gaming. We do expect VIP gaming to come back to levels much, much lower than it was pre-COVID. This service may include material from Agence France-Presse (AFP), APTN, Reuters, AAP, CNN and the BBC World Service which is copyright and cannot be reproduced. The potential collapse of the company puts the jobs of about 9,000 workers across its three casinos on the line. The cashman casino online casino top providers group could be broken up in the process, as administrators would search for buyers for individual assets, if the company can't be rescued as a whole.
An American casino operator controlled by a New York hedge fund has joined the opportunists sniffing around embattled Star Entertainment Group, which is on its last legs and desperately seeking a capital injection to avoid administration. The Casino content creation operator warned that additional equity may be required as part of the refinancing of the DBC debt facility. Star first entered the deal with its the Hong Kong investors in early March, after months of warnings about its financial future — and prior to the bigger deal struck with Bally's and the Mathiesons. The Australian Financial Review reported that the company had failed to raise the funding required to meet near-term payments, including for payroll, which puts the company at serious risk of running out of cash. After a brief trading halt on Friday morning, Star shares plunged 15.4 per cent to 11¢, valuing the company once worth $5 billion at about $315 million. Star did not name the parties that are expected to provide an offer of financing, but it has confirmed previously that top US crypto casino user reviews finance giant Oaktree has tried to buy out Star’s debt from its lenders.
However, the proposal was laced with conditions, including the approval of NSW and Queensland governments and regulators, and a satisfactory settlement with existing lenders. The success of any deal is dependent on its lenders, who need to agree to any asset sale or refinance of their debt which is paying interest of more than 13 per cent. Star subsequently lied to CUP and the National Australia Bank in an effort to conceal the deceit.
On Tuesday, a fresh notice showed his shareholding had increased from 5.5 per cent to 6.52 per cent. The following $200 million is subject to a shareholder vote and regulatory approvals. (It might even come in two lots of $100 million, the first after a shareholder vote and the latter after approvals). A proposed long-term funding deal with Salter Brothers last week could not be finalised. The first payment — about $100 million — will be made on Wednesday to allow the operator to stay afloat. Last month it offered Star a $250 million deal and the Australian casino group wouldn't even meet with them. Company information displayed on The Australian casino indigenous engagement Financial Review is sourced from Morningstar and ASX and is subject to their terms and conditions as set out in our Terms of Use.
Our Star Entertainment analyst Angus Hewitt recently sat down with me to discuss the Star's financial position, top Aussie sports betting apps regulatory concerns, epiphone recommendations what markets want to see from the company, and whether the shares offer a big enough margin of safety. "There remains material uncertainty as to the Group's ability to continue as a going concern," Monday's statement reiterated. The casino operator, which was due to deliver its latest accounts on Friday, is facing voluntary administration.