Star Entertainment Group ASX trading halt as lenders, regulators circle amid cash crisis

The fate of a swag of hotels, apartment towers, three casinos and 9000 jobs will be sealed today after its trading on the ASX was halted and the group awaits an 11th-hour rescue.

• Timeline of Star disaster
• What's at stake if Star falls

The Star Entertainment Group won’t release its half-year results unless it is able to find a way out of its dire financial problems - today - the company confirmed amid a halt in trading of its shares.

Star was due to report its interim results today, but said it would only do so if it received, and accepted, a deal to strengthen its future before the close of the market.

In a statement to the ASX, Star said it continued to look for options that “might” improve its situation and that it expects to receive “one or more liquidity proposals during the course of today”.

“Shareholders should note that if the 1HFY25 Report is not lodged later today as required by the ASX Listing Rules, then the Company’s shares will be automatically suspended from trading from Monday, 3 March 2025,” the statement said.

“Such a suspension would continue until the 1HFY25 Report is lodged and the ASX determines that the Company’s shares should be reinstated to quotation.”

Star said “there remains material uncertainty as to the group’s ability to continue as a going concern”.

The announcement followed a media report that the company was struggling to sign off on accounts that said it was a going concern.

Shares in Star Entertainment Group halted trading pending the major announcement just before the market opened on Friday.

The embattled group – and its 9000 staff – have been increasingly on edge since announcing the company had spent more than $100m cash in three months.

The share trading halt comes a week after the company confirmed it had receiveda $650m debt refinancing offer from funds associated with Oaktree Capital Management.

The Star’s statement on the conditional Oaktree offer said it would provide a total of $650 million in two debt facilities with a term of five years.

It comes a fortnight after it revealed it had knocked back offers from its Hong Kong partners to buy out its Queen’s Wharf casino precinct in Brisbane.

The group made almost $300m less in the second quarter of the financial year than in the first quarter, despite revenue growing at The Star Gold Coast.

Queens Wharf Brisbane City. Photo: Steve Pohlner

In saying it was considering the Oaktree proposal last week, he Star said there was still “no certainty that any of these discussions or negotiations will result in one or more definitive arrangements that might materially increase the Group’s liquidity position”.

“In the absence of one or more of those arrangements, there remains material uncertainty as to the Group’s ability to continue as a going concern,” it said.

In its February 10 statement to the ASX, The Star said it had received “several confidential, indicative and non-binding proposals” from Chow Tai Fook Enterprises Limited and Far East Consortium International Limited, which owns a half share of the Destination Brisbane Consortium assets in the CBD.

■ Rise, fall and collapse? Timeline of Star

The statement said “material uncertainty” remained in whether it would continue as a going concern amid a multi-front financial battle with lenders and Government fines and restrictions.

The consortium partners also hold a 60 per cent share of The Star Gold Coast’s assets.

That announcement came as a six-week trial of former Star executives alleging they breached money-laundering controls and didn’t fulfil corporate fiduciary duties began in the Federal Court.

The Star Gold Coast. Picture: Glenn Campbell

The Australian Securities & Investments Commission (ASIC) launched proceedings against 11 current and former Star executives and directors in 2022 for various breaches of the Corporations Act, which can attract individual penalties of up to $1.56m.

The Star revealed its latest financial results on January 20, noting a “material uncertainty” over its ability to stay afloat.

Star CEO Steve McCann last month said the group could return to profitability if given more “time and support”, but was realistic about the enormity of the turnaround task.

The Star made a financial provision of $399.5m in 2024 – which it hoped would cover the Austrac fine as well as a suite of other fines, underpaid taxes, ASIC proceedings, a looming class action, consultant costs and legal fees.

It had also been in a battle to keep its Queensland casino licence and to refinance $1.6bn of debt for Queen’s Wharf.