(Reuters) – Australia’s struggling Star Entertainment said on Wednesday it would publish its annual results the next day after securing a significant debt package that provides a much-needed lifeline for the casino group.
The gaming company’s corporate lenders have agreed to provide the company with new credit facilities of up to A$200 million (US$137.44 million), reducing its existing A$450 million credit facility to A$334 million.
The A$200 million loan will be made in two instalments, with A$100 million of it being deployed immediately to address the spiralling costs the gaming group is facing at its new Queens Wharf resort in Brisbane.
The deal came after weeks of discussions between the company’s chief executive, lenders, the state government and other stakeholders.
The first tranche will be available from the end of October until December 20th, depending on conditions.
For the second round of funding, Star will have to meet more stringent conditions, including raising at least A$150 million in additional capital and providing information about its long-term strategy.
The future of casino operator Star is currently uncertain after an investigation found it had leadership and culture issues and remained unfit to run the Sydney casino.
Star, which owns casinos in Sydney, Brisbane and the Gold Coast, had its shares suspended from trading by the Australian Securities Exchange on September 2 after it failed to file its annual report for 2024 on time. The company’s shares are expected to resume trading within the week.
(1 dollar = 1.4552 Australian dollars)
(Reporting by Rishabh Chatterjee in Bengaluru; Editing by Mrigank Dhaniwala)