The Star Sydney's licence suspension extended by six months
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The news: The Star Sydney's casino licence will remain suspended until at least 30 September, at which point the NSW Independent Casino Commission (NICC) will reassess Star Entertainment's suitability to regain the licence.
The context: NICC-appointed manager Nick Weeks, whose role was due to expire on 31 March, will continue to have oversight of casino operations during the extended period.
The NICC had sought submissions from both The Star and Weeks in relation to the group's suitability to hold a casino licence in NSW.
In its submissions, The Star accepted that the NICC-appointed manager should remain in place for a further six months while remediation continues and The Star implements measures to secure its finances.
Star Entertainment's shares have been suspended from trading since 3 March after the embattled casino operator failed to lodge its half-year financial report. The group said it would not be able to lodge the report until it secured commitments to refinance its existing corporate debt and provide additional liquidity.
Since then, Star has confirmed the $53 million sale of its 50% stake in the new Queen’s Wharf casino and entertainment complex in Brisbane. It later agreed to a $940 million debt refinancing proposal from property funds manager Salter Brothers Capital.
What they said: "We welcome progress in The Star's remediation efforts and are confident the company is moving in the right direction with its remediation plans," said NICC chief commissioner Philip Crawford.
"The next six months is a critical phase for The Star as it will need to show further progress with its remediation activities whilst also stabilising its finances."
The source: ASX
