CASINO operator Star Entertainment said on Friday (Feb 28) it is expecting to receive one or more liquidity proposals during the day, with its first-half results only to be finalised if those offers sufficiently address its cash-crunch.
Shares of the company fell 11.5 per cent to A$0.12 as at 0002 GMT.
Trading in Star shares was temporarily halted by the Australian Stock Exchange earlier in the day, pending an announcement.
“It is likely that the 1HFY25 report will only be able to be finalised if the company has received liquidity proposals which, after appropriate consideration by the directors, are sufficiently capable of being progressed to finalisation in the context of determining whether the company can continue as a going concern,” Star said.
This month, Star Entertainment said that US-based Oaktree had offered to refinance A$650 million (S$546 million) of its debt, in what could be a major lifeline for the cash-strapped firm.
Star said it was considering the offer but did not guarantee that the proposal would be accepted.
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If the offer is approved, it would result in the shareholding dilution of the casino operator’s investors, making Oaktree a significant investor in the future.
Star, which has casinos entangled in a web of regulations even as its cash reserves deplete and bills stack up, is due to release its first-half results on Friday.
The company is expected to report an underlying loss of A$79.5 million for the six months ended Dec 31, according to Visible Alpha consensus estimates.
If Star is unable to publish results by the end of the day, trading in its shares will be suspended from Monday, the company said. REUTERS
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