Join our daily newsletter At The Bell to receive exclusive market insights
This probably isn’t what Star Entertainment (ASX:SGR) wanted to release to the market on a Friday: The casino says it’s been unable to reach an agreement with two entities who want to give Star $50 million as part of a deal for some of its property assets.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
That’s bad news, because on Thursday it was reported the casino could run out of money this weekend – as in, the next 24 hours.
While discussions are ongoing, Star is perilously close to a total collapse, which would leave it with nearly $2 billion of debt on its books across operations and its Queens Wharf project – what was meant to be a “new entertainment precinct” for Brisbane.
It’s 50% of Queen’s Wharf the two aforementioned entities closest to reaching a deal, Chow Tai Fook and Far East Consortium, really want.
If shares weren’t suspended, it would probably be a pretty unhappy day for the casino’s shareholders. As if things could really get any worse.
Star is, or was, up for a licence review in NSW. Right now, Star isn’t even allowed to ‘be’ a casino, not entirely, but ultimately going back to the casino money laundering crackdown of the late 2010s through to now.
SkyCity’s not having a great time of it either; Crown de-listed a while ago, and now Star.
More market news
Together: The U.S. has suspended aid to Ukraine. Will Europe step into the breach?
Tough trim: Why rate cuts are bad news for the Australian economy
The question is whether or not Star will even exist as an entity legally allowed to exist at all by the time that review comes around.
SGR last traded at 11cps; shares are suspended.
Join the discussion: See what HotCopper users are saying about Star Entertainment Group and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
