Bally’s rescue plan for casino is predatory

Star investors have not been so lucky. The star actions, which exchanged hands for $ 3.70 in 2021, are valid only 8 ¢ under the proposed agreement, which still needs all types of approvals, also by current shareholders.

PUBS and Pokies billionaire Bruce Mathieson will surely be in favor, since it should contribute with $ 100 million of the rescue package and emerge as a more significant shareholder.

But the agreement will lead to a capitalized group for only $ 500 million, compared to a peak of $ 5 billion in 2021. And this was before investors turned to $ 1.5 billion in cash in 2023.

In simple terms, the shareholders have still lost their shirts and every possible rise will not arrive quickly.

The agreement will not actually be a rescue of the staff of 8000 of Star. While this year they sweated for each pay check, their works have never actually been at risk.

The governments of the new South and Queensland Wales were ready to intervene and prevent job losses at any cost if the current owners end up in cash.

Too many jobs, and too many tourist infrastructures, were at stake so that any government does anything else.

Another winner is the CEO of Star Steve McCann.

He played a surprising game – how he would expect from a former world series poker player – delivering an agreement despite zero support from the Government, his shareholders and financiers.

And his brilliant bluff game will repay manly with a remuneration agreement that guarantees that all his $ 20 million in salary, conservation salaries and bonuses will be paid if the agreement is successful while triggers the provisions of the change of control in his contract.

But what about Bally and the unconventional predator of Wall Street who manages it, Kim – will in the end will win from this agreement?

Kim happily emphasizes that he is happy to come across smoking buildings to obtain an agreement in difficulty – presumably while the healthy parties are exhausting the door.

Did the stars smoke blind him from the risks that have accumulated and have almost led to his collapse?

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We may find when Austrac reveals the fine for violations of money recycling to Star that could reach $ 350 million.

Star also addresses years of financial losses and negative cash flow as struggling with the loss of its high Chinese rolls and curbs in its Pokies business that do not apply to pubs and clubs.

Revenue will be expected to decrease again this year and increase only modestly the following year.

His Forbes Interview, Kim had a good idea of ​​what he needed from these highly regulated activities – such as casinos – who pursued and rescue from oblivion.

“Almost everything is regulated to a certain extent,” says Kim. “We embrace him because in the end we can use the rules to our advantage. You can compete in any sport – you just have to know the rules.”

We hope it is right. Nobody wants a repetition of stars last year.

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