Australian casino operator The Star Entertainment Group Ltd says it is working with “various” financial advisers to review its financial and liquidity position, as well to finalise its annual results for the financial year ended June 30.
The casino firm, which remains under scrutiny from regulators over corporate cultural and governance issues, said in a Wednesday filing that it is “holding discussions with various stakeholders in relation to its liquidity position in light of adverse trading and other conditions”.
“The company confirms that the advice being provided has extended, from time to time, to considering the application of provisions of the Corporations Act 2001, including the safe harbour provisions,” stated Star Entertainment.
It added: “The company is working to finalise its financial year 2024 preliminary financial report, although the timing of its release has not been finalised.”
Australia’s safe harbour insolvency regime protects directors from personal liability for insolvent trading while undertaking a restructuring to improve the firm’s financial standing.
Trading in the company’s shares in the Australian Securities Exchange was halted on Friday. On Monday (September 2), trading in the firm’s shares was suspended because the Star Entertainment did not lodge its financial results by the due date.
The Australian Financial Review reported on Wednesday that lenders were “pushing back” against the casino operator’s request for more short-term debt. Citing anonymous sources with direct knowledge of discussions, the outlet said the banks want any new loan to be matched by government concessions and increased security over assets, including properties.
The company’s licence for its flagship Sydney casino (pictured), in New South Wales, was suspended “indefinitely” from October 2022, and placed under state-government supervision.
A report following a second probe into the corporate culture of Star Entertainment, released last week, stated that the company remains unsuitable to hold a casino licence in that Australian state.
The investigation was commissioned by the state’s casino regulator, the New South Wales Independent Casino Commission (NICC), over concerns that Star Entertainment had not adequately committed to cultural reform since it was exposed for anti-money laundering and counter-terrorism failings in 2021.
The group’s licences for its casinos in the state of Queensland were also suspended in December 2022, and placed under state-government supervision.
The firm’s Treasury Brisbane casino shut down last week, ahead of the launch on August 29 of The Star Brisbane, a new casino resort that is part of the AUD3.6-billion (US$2.5-billion) Queen’s Wharf Brisbane, in Queensland.
In May, the company confirmed receiving “inbound interest from a number of external parties” regarding potential investment in the firm. But it said at the time that “none of the approaches” had “resulted in substantive discussions”.
