Star Entertainment financial position being reviewed
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The news: Star Entertainment Group says it is reviewing its financial and liquidity position as the embattled casino operator struggles to finalise its accounts for the 2024 financial year.
The numbers: Star’s shares, which have lost more than 50% of their value over the last 12 months amid a shrinking premium gaming market and regulatory troubles, were suspended from trading on the ASX after the company failed to lodge its full-year financial report last month.
The context: In a statement late on Wednesday, Star said it is reviewing its financial and liquidity position with various advisors as it tries to finalise its preliminary financial accounts.
This includes “holding discussions with various stakeholders in relation to its liquidity position in light of adverse trading and other conditions,” it said, adding that the advice being provided has extended to considering safe harbour provisions under the Corporations Act, which give boards scope to secure fresh financing to protect the interest of investors and creditors.
Star put its shares in a trading halt last week after a months-long inquiry into the gambling group's suitability to hold a NSW casino licence found that it breached compliance rules between September 2022 and July 2024 and concluded it remained unsuitable to operate the flagship Sydney casino.
The source: ASX announcement
