The Star Entertainment Group shares lift after confirming debt reprieve
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More news: Shares in The Star Entertainment Group lifted in afternoon trade after the troubled casino operator confirmed it has negotiated a waiver for its 30 September debt covenant.
At 2:06pm AEST, shares in The Star were up 2.3% to 9.1 cents each. The stock had been in a trading pause ahead of this announcement to the exchange.
The Star Entertainment Group confirms reprieve from debt obligations
More news: The Star Entertainment Group has confirmed that it has finalised discussion with its syndicated facility agreement lenders regarding a covenant waiver for 30 September.
In an announcement to the exchange, The Star said it flagged that it was “in discussion with lenders regarding waivers for future financial covenant testing” in its unaudited preliminary financial report for FY25 that was released in August.
The waiver is subject to exchange of signed documents. The Star did not make any comments regarding fees that would reportedly be paid to the lenders.
The Star’s directors will consider this as they finalise the troubled casino operator’s FY25 audited financial report, due to be lodged by the end of the day.
The Star Entertainment Group enters trading halt after reports of debt reprieve
The news: The Star Entertainment Group has entered a trading pause following reports overnight that the troubled casino operator had been granted additional time by lenders to pay back its debt in exchange for a fee.
The context: Lenders are expected to waive debt covenants, which Star has been in breach of, for the June and September quarters, according to the Financial Review citing sources. This means the casino operator will have until February 2026 to find ways to service its debt.
In addition to the fee Star will pay, it is also expected to repay $60 million of its super senior debt to reduce leverage.
The agreement is expected to enable Star's directors to sign off on its FY25 audited financial report, due today.
The sources: The Australian Financial Review, ASX, ASX
