Troubled Australian casino firm The Star Entertainment Group Ltd said in a Wednesday filing it had “not received a binding debt commitment letter” regarding up to AUD940 million (US$592.2 million) in financial support from Salter Brothers Capital, and therefore “the refinancing proposal has now been withdrawn”.
An extended deadline on the talks expired on Tuesday, according to corporate information.
As a result, there “remains material uncertainty” about the casino firm’s ability to continue as a going concern,” it noted in its latest filing.
As well as running The Star Sydney in New South Wales, the group also operates The Star Brisbane (pictured), in Brisbane, Queensland.
Star Entertainment has a 50 percent equity interest in Destination Brisbane Consortium. The latter entity controls the Queen’s Wharf Brisbane real estate site, where The Star Brisbane casino resort – which had a phased launch starting in August last year – is based.
Star Entertainment said the breakdown in talks on the Salter Brothers Capital refinancing was despite it having “continued to work diligently with Salter Brothers Capital” on the deal, that would have seen the casino business receive sufficient liquidity to refinance all of the group’s existing debt.
The effort had involved “relevant third parties, including state governments and regulators”.
But Star Entertainment noted: “As a result of that engagement, it became apparent that it was unlikely that a number of the conditions precedent to the refinancing proposal would be… satisfied, either at all or in sufficient time to address the current liquidity needs of the company.”
In particular, “lender requirements for specific priority arrangements and enforcement rights in relation to their proposed security over non-gaming assets of The Star [Entertainment] could not be met.”
The casino group added it remained unable to lodge with the Australian Securities Exchange its half-year financial report for the period ended December 31, 2024, “in the absence of an appropriate refinancing solution”.
It referred to a mid-March bid – described at the time as “unsolicited” – from United States-based casino group Bally’s Corp, for a stake in the Australian operator.
Star Entertainment said: “The company continues to explore liquidity solutions that might materially increase the group’s liquidity position in the medium term, including engaging with Bally’s Corp in relation to the proposal received on 10 March 2025. “
In early March, The Star Entertainment confirmed a deal had been tabled for it to dispose of its 50-percent equity interest in Queen’s Wharf Brisbane to Hong Kong-based real estate partners.
