Star Entertainment looking to avoid imminent collapse as casino giant’s financial position worsens dramatically
Under-pressure casino operator Star Entertainment is hoping for a last-minute reprieve today in the form of “one or more” liquidity proposals which will allow it to continue operation saying, “that the Company is continuing to explore possible liquidity solutions that might materially increase the Group’s liquidity position, and anticipates that it will receive one or more liquidity proposals during the course of today.”
Star told its shareholders, “As noted in the company’s recent ASX announcements, there remains material uncertainty as to the group’s ability to continue as a going concern.
The Australian operator, which controls venues in Sydney, Brisbane and on the Gold Coast, has teetered on the edge of collapse as revenues decline, causing disruptions to the business, reports the Guardian.
Friday morning saw Star Entertainment fail to lodge its financial accounts, as it was scheduled to do so, and enter a trading halt, preventing investors from trading shares in the entity. This has been seen as a sign that the business no longer has the funds to maintain its operations.
A half-yearly financial reporting update on the company’s website reads, “It is likely that the 1HFY25 Report will only be able to be finalised if the Company has received liquidity proposals which, after appropriate consideration by the Directors, are sufficiently capable of being progressed to finalisation in the context of determining whether the Company can continue as a going concern.”
The Guardian’s report continues that, “The casino operator has experienced a sharp decline in high rollers from Asia in the aftermath of a NSW inquiry that found Star facilitated hundreds of millions of dollars in banned transactions, exposing it to money laundering.”
Shares in the company are currently trading around 12C from a high above $5 in early 2018.
It currently employs around 8,000 people across its entire workforce.
Star Entertainment’s website boasts of some 18 million guests per year, more than 60 bars and restaurants and seven hotels.
Featured image: Courtesy of Star Entertainment
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