Star shares in trading halt ahead of capital raising

The news: Shares in Star Entertainment Group have been put in a trading halt ahead of a likely capital raising by the cash-strapped casino operator.

The numbers: Star’s shares have slumped by more than two-thirds in the past 12 months, closing at 75 cents on Friday. The Australian Financial Review reported the company would undertake a capital restructure that includes a $750 million equity raising and another $450 million via debt.

The context: The capital restructure comes after a slide in the company’s performance, which reported a massive $2.44 billion loss last month. Star faces tax increases, multi-million dollar fines, and four shareholder class actions, even as its casino licences in NSW and Queensland have been revoked after two inquiries exposed suspected money laundering, large-scale fraud and foreign interference in its Australian casinos for years.