Star Entertainment shares shed 11% on liquidity concerns
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More news: Shares in Star Entertainment tanked as they emerged from a brief trading halt after the embattled casino operator said it is expecting to receive "one or more" liquidity proposals later today, likely delaying the release of its first-half results.
Star shares were down 11.5% to 11.5 cents at 11:30am AEDT, making it the worst performing company on the ASX 200 index.
Star Entertainment expecting 'one or more' liquidity proposals today
More news: Star Entertainment said it is expecting to receive "one or more" liquidity proposals during the course of today, likely delaying the release of its half-year financial report.
The casino operator said it is likely the report will only be able to be finalised if the company receives proposals that might "materially increase" the group's liquidity position.
If the report is not lodged today, as required by ASX listing rules, the company's shares will automatically be suspended from trading from Monday. The suspension would continue until the report is lodged.
Star Entertainment pauses trading, casting earnings in doubt
The news: Star Entertainment paused trading minutes before market opened this morning, with the embattled casino operator due to publish its half-year financial results today.
The context: The delay, flagged earlier in media reports, comes as the company struggles to secure short-term funding to meet immediate financial obligations, including payroll.
The Star is required to publish its results by close of business today under ASX rules. Without completed accounts, its shares will be suspended from trading.
The company, which operates casinos in Sydney, Brisbane and the Gold Coast, had $78 million in available cash at the end of December but has been burning through funds amid mounting regulatory fines, weak gaming revenues and rising costs at its new Queen’s Wharf development in Brisbane.
