IN THE NEWS: THE STAR SAVED BY BALLY INVESTMENT
Star Entertainment has narrowly avoided going into administration after securing a $300 million rescue deal from US casino company Bally’s Corporation, safeguarding thousands of jobs. The struggling Australian casino operator reached an agreement that will see Bally’s initially inject $100 million to keep its venues in Brisbane, the Gold Coast, and Sydney operating.
In return, Bally’s will acquire a controlling 56.7% share in Star. The remaining $200 million will either be provided after shareholder approval or split into two payments before early October. There is also a possibility that Star’s largest shareholder, Bruce Mathieson, may contribute $100 million himself, which would reduce Bally’s commitment.
Star’s board is now encouraging shareholders to support the agreement, believing it will secure the company’s future and unlock the remaining funding from Bally’s. Bally’s, which operates 19 casinos across the US, is confident in its ability to turn Star around and restore its status as a leading Australian gaming operator.
The United Workers Union welcomed the deal, highlighting that the agreement protects around 9,000 jobs that would have been at risk if Star collapsed. The union emphasised that keeping the casino venues running is a positive outcome for employees, their families, and the surrounding communities.
Star Entertainment had suspended its share trading since late February, unable to submit its half-year financial results without a refinancing solution. The company had been facing financial difficulties for months but managed to stay afloat by selling its 50% stake in a new Brisbane development and securing a $250 million short-term loan.
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