The Star Entertainment Group Ltd (ASX: SGR) shares are still firmly in the spotlight after the company announced it has taken a crucial step to address its financial challenges.
Star shares aren't trading today – they have been in a company-requested trading halt since last week, which the ASX extended to a suspension.
But they are down 13% this year to date, extending losses over the past year to nearly 47%.
Let's take a look at the latest for Star Entertainment shares.
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Treasury Casino sale: A temporary boost?
Last week Star advised that it has sold its historic Treasury Casino site in Brisbane, raising $67.5 million in proceeds.
The embattled gaming giant will pocket $60.7 million from the deal. However, it still needs to secure an additional $239 million as it continues efforts to stabilise its balance sheet.
Star sold the Treasury Casino property to Griffith University, which is headquartered on the Gold Coast.
While the proceeds will bring some much-needed financial relief, they are only a fraction of the $300 million the company needs to fund its operations. Time will tell what the long-term impacts of the sale on Star Entertainment shares will be.
According to The Australian Financial Review, these include funds to cover cost overruns at its Queen's Wharf development and other financial obligations.
For the time being, Star's shares remain suspended as it negotiates with lenders and state governments to secure the rest of the financing.
And what about the property itself?
Griffith University plans to convert the historic site into a business, IT, and law campus by 2035.
The University says this development will accommodate 7,000 students and 200 staff, according to the AFR.
Star Entertainment shares uphill battle
Despite the sale, Star Entertainment shares face additional pressures. The company is seeking concessions from its many lenders, who are owed $450 million.
Additionally, it is asking for a tax reprieve from the New South Wales and Queensland governments.
Star is also grappling with a cost blowout at Queen's Wharf, growing remediation expenses, and potential fines for breaching anti-money laundering laws.
That's an unhappy triad of issues the casino has to endure.
When it releases its full-year results, it expects to announce a $1.6 billion write-down of its casino assets and a major cost-cutting plan.
Foolish takeaway
The Treasury Casino sale gives Star Entertainment a short-term boost. But it has a long way to go, with $239 million still to secure.
Safe to say, Star Entertainment shares face an uphill battle.
Before the trading halt and suspension, the Star share price settled at 45 cents apiece. That's down from a high of $4.04 in November 2019.
