Star Entertainment Group Ltd (ASX: SGR) shares remain frozen amid news that the Queensland and NSW governments have given the company a lifeline.
Here's what's happening.
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Star Entertainment issues regulatory updates
After yesterday's market close, Star Entertainment lodged an update with the ASX regarding The Star Gold Coast.
The company advised that the Queensland Government has deferred the suspension of The Star's casino licence until 30 September.
The Star Gold Coast was due to have its casino licence suspended for 90 days from next Monday.
The deferral gives the casino operator an extra three months to work on a financial rescue plan that is currently underway.
The government has also ordered that the independent special manager, Nicholas Weeks, continue overseeing operations until 30 September.
Queensland Attorney-General Deb Frecklington said:
The Government has made it clear that our expectations have not changed and The Star must progress its remediation.
Based on the advice of the Special Manager we are satisfied The Star has been continuing to make positive progress under the agreement.
The extension will provide The Star with additional time to deliver on its outstanding commitments while keeping its doors open.
This deferral does not prevent us from taking immediate action should The Star fail to meet its remediation obligations.
Star Entertainment also said the external advisor for The Star Brisbane would also remain in place until 30 September.
In other news…
Today, Star Entertainment issued another update regarding The Star Sydney.
Star said the NSW Independent Casino Commission (NICC) has extended the suspension of The Star's licence until at least 30 September.
The NICC also ordered that Nicholas Weeks continue in his role as special manager until at least 30 September.
NICC Chief Commissioner, Philip Crawford, said there had been steady improvements in The Star Sydney's remediation.
However, he said the company's dire financial situation meant progress had been slow.
Crawford said:
We welcome progress in The Star's remediation efforts and are confident the company is moving in the right direction with its remediation plans.
The next six months is a critical phase for The Star as it will need to show further progress with its remediation activities whilst also stabilising its finances.
What's happening with Star Entertainment shares?
Star Entertainment shares remain suspended from trading.
The ASX stock has been frozen at 11 cents per share since 3 March.
The ASX suspended Star Entertainment shares after the company failed to meet its 28 February deadline to lodge its 1H FY25 report.
At the time, the company explained that it needed more liquidity to finalise the report, and there was "material uncertainty as to the Group's ability to continue as a going concern".
An update on rescue plan progress
As we've previously reported, Star Entertainment is working on a proposed financial rescue plan.
The plan involves Star Entertainment selling its 50% stake in Queen's Wharf in Brisbane and gaining a $250 million bridge loan through King Street Capital Management, as well as a five-year deal to refinance its debt with Salter Brothers Capital.
On Tuesday, we got an update regarding the refinancing deal.
Star Entertainment had previously announced it had entered into an exclusivity deed to enable Salter Brothers to complete its due diligence.
Star announced on Tuesday that it has formally extended the exclusivity deed, at Salter Brothers' request, til next Tuesday, 1 April.
Star Entertainment said:
… SBC is working towards making a binding offer of finance with respect to the Refinancing Proposal by 31 March 2025 which, if accepted by The Star, would be followed by a further period of exclusivity to enable preparation of long form facility documentation and finalization of conditions precedent.
As we've reported, Star Entertainment also has a second option to save itself.
US casino giant Bally's Corporation has made an unsolicited funding offer for a controlling stake in Star Entertainment.
There is no further news on this option.
Star Entertainment shares snapshot
Star Entertainment shares have fallen 79% over the past 12 months.
