Lenders of The Star Entertainment Group have extended an additional AU$150 million ($100 million) lifeline to help the casino operator navigate a cash crisis driven by cost overruns at its new Brisbane casino and a drop in patronage.
According to Australian media, the company’s lenders and potential financiers include Oaktree Capital and Cerberus Capital Management. Discussions between The Star’s board and these lenders are still ongoing.
The proposed AU$150 million infusion would expand the existing AU$350 million senior debt facility, contingent on securing further assets.
Among the lenders, Macquarie and Deutsche Bank have sought increased security over The Star’s properties. However, any deal will require regulatory approval.
Star Entertainment is also collaborating with the Queensland and New South Wales governments, as well as the financial crimes regulator, to stabilize its finances.
The company aims to finalize an agreement as soon as possible.
Star Entertainment, which operates in Sydney, Brisbane, and the Gold Coast, announced a trading halt shortly after opening Star Brisbane.
The group has also been seeking tax relief while grappling with financial difficulties and regulatory scrutiny.
Recently, the company confirmed a deal to sell its Treasury Building in Brisbane to Griffith University, though the proceeds may fall short of the AU$300 million in short-term funding needed by the group.
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