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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.
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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.
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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.
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