Dispute between a Star and Creditors Over Bally Agreement Potentially at Risk in Australia
Inside Asian Gaming reports that the Australian casino operator, The Star Entertainment Group, has agreed to offload its Queen's Wharf Brisbane assets and associated debt. This decision comes as the company grapples with a challenging financial position, affected by a recently agreed AU$300 million (US$195 million) rescue package led by US casino operator Bally's Corp.
The Star Entertainment Group's financial difficulties stem from its lenders proposing terms for covenant waivers that the company finds unacceptable. The Senior Facility Agreement (SFA) for the company extends beyond 30 June 2025, and the SFA creditors are currently being negotiated regarding possible covenant utilizations from this date.
The Star Entertainment Group has a loan of AU$430 million (US$279 million) and is still relying on the support of its lenders under the SFA. In an effort to strengthen its financial position, the company has requested covenant waivers for the September and December quarters of its loan.
The Queen's Wharf Brisbane assets and associated debt are part of the agreement with the company's Hong Kong partners. The Star Entertainment Group is in discussions with its SFA lender group regarding potential covenant waivers for September and December 2025.
No specific details about the terms of the rescue package or the offloading of assets are provided. Additionally, no information is given about the potential consequences of the unacceptable terms for the Star Entertainment Group's loan.
It is worth noting that Bally's is a commercial casino, but no specific details about its involvement in the funding are provided. The company in question is not specified, but it is involved in the funding of Bally's.
The article does not provide any information about when or where the events discussed occurred. However, it is clear that The Star Entertainment Group is navigating a complex financial situation and seeking crucial waivers to secure its future.
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