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The casino group was working to secure a refinancing arrangement with Salter Brothers Capital, which has now been withdrawn. Star warns its future remains uncertain and its shares will not be able to return to trade until it is able to secure cash and lodge its financial accounts. Star Entertainment has failed to secure a crucial financial lifeline, as a refinancing deal with Salter Brothers Capital is withdrawn. This option will allow the Star to stay afloat but may lead to multiple administrations unless the underlying issues, are resolved.
On Monday 3 March, the company was placed into a compulsory second trading halt by the ASX after not posting its half-yearly earnings in the end, putting such deals in jeopardy as a result and thousands of jobs at risk as a collapse is potentially imminent. Later that month Oaktree Capital Management offered a $650 million loan to help refinance the company's debt. The company would need an immediate cash injection in order to remain solvent.
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Regulators are still considering substantial penalties, which could push the company closer to collapse. It recently secured a $300 million rescue package from US casino giant Bally’s Corporation after being hit with allegations of law-breaking, including money laundering. But the company behind it, The Star Entertainment Group, is facing serious financial instability.
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The company re-deployed corporate staff to offices at its casino sites in Sydney, Gold Coast, and Brisbane. The executive also asserted that the events center at the $2.4 billion Queen’s Wharf should be ready to debut in September while his company is working ‘at full throttle’ to get its adjacent hotels ready for guests. The failure to secure the $750 million deal has forced the company to try and shore up an alternative arrangement with US casino group Bally's. Schofield added that during the last 18 months, staff had continued to show up to work, at times without the guarantee they would be paid at the end of the week. The US company gained a 38 per cent stake in Star last week through a $300 million investment and is pushing for a more unified strategy across the group’s Queensland assets.
The company has told investors it has made a deal with its Hong Kong partners, surrendering its share in Queens Wharf. Remaining assets included in the transaction, such as the Treasury Hotel in Brisbane, are subject to a separate set of conditions to be finalised in the second half of 2026. It will be completed in two stages with the exit from Queen’s Wharf first and a sunset date of November 30. Joint managing director of the Far East Consortium Wendy Chiu said the deal was a major milestone for the Queen’s Wharf casino, and the agreement would safeguard about 2700 jobs.
