THE STAR ENTERTAINMENT GROUP LIMITED SGRASX ASX Share Price & News

Star chief executive Steve McCann has unsuccessfully tried to coax lenders, state governments and investors into giving the embattled Ripper Casino tournament entry requirements operator the time and cash needed to work through its challenges. Embattled WinSpirit best online 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.
Star also secured a $200 million debt facility to cover some of its short-term financial needs, but this comes with a hefty 13.5% interest rate. Star will have to repay more than $36 million to its consortium partners between now and September, but the bigger issue is how it will shoulder its share of future equity contributions and the consortium’s debt. “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,” it said. Star Entertainment has narrowly dodged financial collapse with thousands of jobs saved after a US Dunder Casino Data Protection giant swooped in to rescue the flailing business.
Salon 95 continued to operate even after then-Star CEO Matt Bekier told regulators his company had severed business links to Suncity. Star was deemed unfit to hold its NSW licence by the first Bell inquiry in 2022. Since then, Star Sydney has since been under the supervision of a state-appointed manager – Nick Weeks. Weeks’ term has been extended multiple times and currently runs through September. Each were in breach of Listing Rule 17.5 for not lodging the relevant periodic report by the due date.
In a further sign of its precarious financial situation, the company’s Monday update also reiterated that the company’s directors continued to seek external advice on application of “safe harbour” provisions of the Corporations Act. This is part of the law aimed at helping directors turn around a distressed company without being personally liable for debts incurred by an insolvent company, provided they meet certain conditions. “While discussions continue with respect to a range of different solutions, there is no certainty that any of these negotiations will result in one or more definitive arrangements that might materially increase the Group’s liquidity position.
“It’s going to be important for both government and the Star live dealer games Leon Casino, or whoever ends up taking that over, for it to be an ongoing viable solution.” From now on, he says, the business will be about accommodation, retail and restaurants with gambling as a sideline. No longer listed on the ASX, its financial performance is difficult to gauge but if it had hopes of a quick turnaround and easy profit, they may have been dashed.
The company’s chief executive, Steve McCann, needs to secure long-term financing from an unnamed party for the accounts to be signed off and for trade to resume. A deadline for the blow-up of a deal with the free casino gaming demo operator’s Hong Kong investors is approaching. Yesterday, there were media Ruby Fortune audit reports that Star was “on the brink” of inking a deal with its joint venture partners Chow Tai Fook and Far East Consortium, to buy its 50 per cent interest in the development. The falls this week have been driven by several factors, including US trade policy uncertainty at a time when fears of a looming US recession are rising. Locally, the falls have been exacerbated by more weakness in the big banks and worsened after BHP, RIO, South32, and energy giant Woodside all traded ex-dividend. “The horrific price action in the ASX200 has continued today, slipping below 8,000 for the first time in almost six months. Canstar analysis of RBA credit card statistics and in-house survey data shows that of those with credit card debt, the average amount owing is estimated to be $4,420.