AUSTRALIAN cash-strapped casino operator Star Entertainment said it expects to receive bailout offers on Friday but warned it might not be able to file its first-half earnings which should be submitted by the end of the day.
Star “anticipates that it will receive one or more liquidity proposals during the course of today,” it said in a statement.
Its earnings report can only be finalised after its directors look at the proposals and determine whether the company “can continue as a going concern,” it added.
If Star is not able to lodge the earnings report by the end of Friday as required by listing rules, trade in its shares will be suspended from Monday until the report is lodged and the Australian bourse determines trade can resume.
Shares in the country’s No. 2 casino operator dropped by a fifth in value on Friday to just 10 Australian cents.
Star Entertainment said earlier this month that US-based Oaktree had offered to refinance A$650 million (S$547.2 million) of its debt and that it was considering the proposal.
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It was not immediately clear if the proposals Star Entertainment was expecting on Friday included revisions to the Oaktree offer or were different.
A spokesperson for Star was not available for comment. Oaktree declined to comment on whether discussions are still in place with Star.
For years, Star and larger rival Crown Resorts, owned by Blackstone, have faced multiple inquiries into violations of anti-money laundering rules and subsequent legal woes.
Star has poured millions into compliance upgrades and new systems to restore its battered reputation and secure casino licenses. Those costs and weaker discretionary spending by consumers have hit the firm hard.
“Star has to maintain itself as a viable casino, that’s something that they have to do,” New South Wales state energy minister Penny Sharpe told reporters.
“We’re obviously been working with them over a period of time on a range of issues including the importance of the employment that is there and will continue to do so.”
Star secured concessions on casino duty rates with the state of New South Wales in 2023 and has worked on a transition plan to stabilise operations at its Sydney casino and curb further job cuts.
Last year, the state decided not to revoke the firm’s license to operate in Sydney, allowing it to keep running with a minor penalty of A$15 million.
Star is expected to report an underlying loss of A$79.5 million for the six months ended December 31, according to a Visible Alpha consensus estimate. REUTERS
