Star Entertainment secures first $100m rescue loan after meeting conditions
The embattled gaming group has secured a lifesaving $100m rescue loan after meeting strict conditions, and will now work on qualifying for the second $100m tranche.
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Embattled gaming giant Star Entertainment Group has cleared a major hurdle in its bid to keep afloat, confirming it has satisfied the conditions laid down to enable it to access the first $100m tranche of a rescue loan.
The company, which last week revealed a $27m loss before significant items in the first four months of the 2025 financial year, said the $100m drawdown from corporate lenders is expected to be received by December 9.
The accessing for the first tranche has cleared the way for the company to focus on meeting the more stringent conditions set for the second $100m tranche by April 9, 2025.
In a market update Star said that under the terms of the facility, the proceeds of the $67.5m Treasury Casino sale in the Brisbane CBD to Griffith University must be placed into escrow, resulting in a net increase in cash for the company of about $37.1m after fees.
Star has been struggling with liquidity and viability issues amid its regulatory and management challenges after a tumultuous 12 months which put the group’s casino operations in doubt and generated a record share price plunge.
Shareholders reacted positively to the news with its shares closing 7.1 per cent higher on Tuesday at 22c each.
It was rare good news for the company with angry shareholders at Star’s AGM on November 28 issuing a first strike against a remuneration report for its under-siege board.
New chief executive Steve McCann had told shareholders said they were at a “critical point” in Star’s liquidity with continued weakness in the operating performance of the group.
The latest result adds pressure to the gaming company as it tries to raise a further $150m in capital from external sources, and obtain approval from the lender group for their strategic plan – both if which are part of the conditions it will need to meet to access the next $100m tranche.
The group is also facing multiple shareholder class actions and looming fine by Australia’s anti-money laundering and counter-terrorism financing regulator and financial intelligence unit AUSTRAC.
Mr McCann has announced a $100m cost savings plan which includes a hiring freeze, cancellation of bonuses and a 300 job losses.
Star has already sold the heritage listed Treasury Casino as part of a potential $300m in asset sales with conjecture of the sale of its flagship The Darling Hotel in Sydney for up to $200m.
Star owns casinos in Brisbane, Sydney and Gold Coast
The findings of the Bell Two inquiry, the NSW independent Casino Commission (NICC) allowed the group to keep its Sydney casino operating under government supervision for the time being — and not to cancel its licence.
Mr Bell’s first inquiry in 2022 resulted in the installation of a special manager to run Star’s casinos in both Sydney and Queensland, after he found breaches of money laundering rules and other misconduct.
The inquiries also resulted in a raft of operational reforms and changes to the Board with Mr McCann replacing Robbie Cook as chief executive and Anne Ward replacing David Foster in April.
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Originally published as Star Entertainment secures first $100m rescue loan after meeting conditions
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