Australian casino group The Star Entertainment is in tense negotiations with banks, trying to secure breathing space on AU$430 million ($278.5m) in loans. On August 27, Star Entertainment confirmed that it is seeking waivers for its debt covenants for September 30 and December 31, 2025. Without those waivers, The Star risks breaching loan agreements. But
Australian casino group The Star Entertainment is in tense negotiations with banks, trying to secure breathing space on AU$430 million ($278.5m) in loans.
On August 27, Star Entertainment confirmed that it is seeking waivers for its debt covenants for September 30 and December 31, 2025. Without those waivers, The Star risks breaching loan agreements. But management said conditions demanded by lenders were “unacceptable”, and talks are still continuing.
According to the Australian Financial Review, the dispute involves major financiers, including Washington H. Soul Pattinson, Macquarie, and Deutsche Bank.
Star’s financial crisis
Earlier, in order to repair its finances, Star agreed to sell its 50% stake in the AU$3.6 billion Queen’s Wharf Brisbane development to Hong Kong partners, effectively pulling out of Brisbane. However, later the deal failed, causing the company another issue.
Meanwhile, US casino operator Bally’s made an AU$250million takeover offer. The Star’s board supported the bid, but it still needs approval from both regulators and shareholders.
Investors will get a closer look at the company’s finances soon. Unaudited results for the six months to June 30 are due on August 29, with full audited accounts to follow by the end of September.