Star on the brink again as $940m lifeline falls through
Star Entertainment confirmed that he was unable to guarantee an $ 940 million financing rescue line from the investment company that Salter Brothers needed to guarantee his survival, putting him at risk of collapse.
Star said he is looking for funding from other sources, including an shareholding proposed by the US casino group Bally’s Corporation, but he will not say how long he has before he ends in cash.
Star still addresses a fine in hundreds of millions of dollars for violations of the laws on the recycling of Australian money, adding to its financing problems.Credit: Joe Ruckli
“The withdrawal of the refinancing proposal follows a large commitment from the star with the brother capital jump and third parties relevant,” Star said in a statement to the ASX Wednesday.
Star said that “material uncertainty about the group’s ability to continue as concern remains”.
Star survived at this point after cutting an agreement with its partners of the Brisbane casino to deliver the operation in exchange for a cash payment of $ 35 million and greater exposure to the properties that surround its profitable resort of the Gold Coast.
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He has still given stars only weeks to guarantee the long-term financing plans-a proposal to refinancing $ 750 million with jumping jump to stay afloat.
The plan was of a financial structure of $ 250 million to support its loans until the end of April, while a proposal for financing proposed with Salter was implemented, which could provide up to $ 940 million debt capacity.
Star confirmed that the latter is necessary to guarantee his long -term survival and for the Board of Directors of Star to sign his financial accounts and allow his actions to trade again.
