The Star Entertainment Group has confirmed that its shares have been automatically suspended from trading on the Australian Securities Exchange (ASX) after the casino operator failed to publish its 1HFY25 report last week.
The group was scheduled to submit its half-year financial report for the period ended 31 December 2024 last Friday – 28 February 2025 – as required by the ASX Listing Rules.
However, they failed to do so. An announcement published by the Star on 3 March stated that trading of its shares on the ASX had been automatically suspended as a result.
The Star said that the suspension will remain in effect until the 1HFY25 Report is lodged and the ASX determines that its shares should be reinstated to quotation.
The group noted that it is “unlikely to be in a position to lodge its 1HFY25 Report unless, and until, it has secured a refinancing commitment that would enable The Star to refinance all of the Group’s existing corporate debt, as well as to provide additional liquidity”.
“The company will continue to keep the market informed of material developments,” the announcement said.
“As noted in the company’s recent ASX announcements, there remains material uncertainty as to the group’s ability to continue as a going concern.”
Recent proposals
Over the past month, the Star has acknowledged several proposals as the group continues to seek refinancing support.
The Star recently confirmed receiving several confidential, indicative and non-binding proposals from Chow Tai Fook Enterprises Limited (CTFE) and Far East Consortium International Limited (FEC) looking to acquire the group’s 50% interest in its Destination Brisbane Joint Venture, along with other assets.
Following an assessment of the CTFE and FEC proposals, the operator concluded that “none of the proposals have provided sufficient value for The Star”, adding that while it continues to engage with the CTFE and FEC, there is no certainty that a transaction will be concluded.
The group also recently provided information on a debt financing proposal it is considering from funds associated with the global asset management firm, Oaktree Capital Management.
This proposal features a commitment letter and term sheet with the terms upon which Oaktree would be willing to provide AU$650m in two debt facilities with a five-year term.
Several conditions are linked to the proposal, including “a comprehensive security package and intercreditor documentation which requires consents from New South Wales and Queensland Governments and regulators, completion of due diligence in relation to specified matters, that the existing SFA lenders enter a settlement and or refinancing agreement on terms satisfactory to Oaktree, the execution of long-form financing documentation and other conditions”.
However, the proposal is not conditional on the Star “raising subordinated capital nor any waiver or deferral of tax payable to State Governments”.
The group stated that there is no certainty that the proposal will be progressed, that the conditions will be satisfied, or that it will be implemented, adding that additional funds will be needed for the period before the proposal is implemented.
