The Star Entertainment Group (SGR) faces ongoing financial uncertainty after Salter Brothers Capital withdrew its refinancing proposal. The proposal, intended to provide sufficient liquidity to refinance The Star’s existing debt, was terminated due to the unlikelihood of satisfying several conditions precedent within a suitable timeframe. Key among these were lender requirements for specific priority arrangements and enforcement rights over the company’s non-gaming assets, which could not be met.
The Star had been diligently working with Salter Brothers Capital, engaging with state governments and regulators to navigate potential challenges. However, these discussions revealed significant obstacles to fulfilling the lender’s demands. The withdrawal of the refinancing proposal further complicates The Star’s financial situation, delaying the lodging of its half-year financial report for the period ended December 31, 2024.
The company continues to explore alternative liquidity solutions, including engaging with Bally’s Corporation regarding a proposal received on March 10, 2025. However, The Star acknowledges that material uncertainty remains regarding the Group’s ability to continue as a going concern.
