It's been four weeks since Star Entertainment Group Ltd (ASX: SGR) stock traded on the ASX.
Before this morning's opening bell, the last time you could buy and sell shares in the S&P/ASX 200 Index (ASX: XJO) casino operator was on Thursday, 29 August.
Shares closed down 2.2% on the day, at 45 cents, bringing the stock down 28.6% over the prior 12 months.
With Star resuming trade on the ASX today, loyal shareholders will be looking back on that 2.2% loss as a drop in the bucket. Less loyal shareholders are likely joining the cadre of sellers.
In morning trade on Friday, Star shares are down 50.0% on the ASX, changing hands for 22.5 cents apiece.
That sees the ASX 200 stock down a painful 64.3% in a year.
Image source: Getty Images
Why was Star stock suspended on the ASX?
Star shares took a break from the ASX at the company's request before market open on 30 August. The casino operator initially indicated the pause would only last for a few days.
This came after the company received the second Bell report into its operations, which was released by the NSW Independent Casino Commission (NICC).
With the report citing "governance and cultural concerns", Star said it was "considering the report and the implications it may have for disclosures concerning its financial results for FY24".
The company was also said to be getting set to announce a $1.4 billion write-down of its casino assets along with a range of cost reductions.
What's happening now?
During the past month's pause from the ASX, Star has kept investors up to date with regular announcements of its ongoing work regarding its financial position.
That included its agreement to sell the leasehold interest in the Treasury Brisbane Casino building to Griffith University for $67.5 million. Though the company was said to need some $240 million to stabilise its balance sheet.
After market close this Wednesday, Star released an ASX announcement revealing that it had reached an agreement on a new debt facility for up to $200 million in two instalments.
But this will come at a significant cost.
As Motley Fool analyst Mitchell Lawler noted on the day:
The interest rate will be 13.5% per annum. This will apply to the new loan as well as the old loan, which has been reduced from $450 million to $334 million. Assuming the full amount is held for a year, the interest alone would be roughly $72 million.
The new loan will need to be paid by December 2027.
Yesterday, when Star shares were still halted on the ASX, the company released its delayed results for FY 2024.
Among the core metrics putting the ASX 200 casino operator's shares under selling pressure, Star reported a statutory net loss of $1.68 billion, spurred by a non-cash impairment charge of $1.44 billion.
Star reported revenue of $1.68 billion over the 12 months, with pre-tax earnings of $175 million.
On the regulatory front, Star is expected to submit a report to the NICC today on its financial plans and how it intends to address the issues uncovered by the second Bell report.
