Australia’s Star Entertainment Group Limited said Wednesday that talks with stakeholders are ongoing but confirmed the company is still not in a position to release its FY24 financial results. Trading of Star’s shares on the ASX remain suspended.
In a filing, the company stated that it is “continuing to work with various stakeholders and advisers in respect of its financial position”, specifically with state governments, regulators and lenders, among others.
Star, which is reported to be on the brink of financial collapse, had previously confirmed that such discussions related to its troubled liquidity position have included considerations around the application of provisions in the Corporations Act 2001 (Cth), specifically the safe harbour provisions.
Safe harbour provisions are designed to allow directors of a company to pursue restructuring rather than placing it into administration by offering protections against personal debt liability should the restructure ultimately fail.
The drastic action follows a second finding of unsuitability in NSW, home of The Star Sydney, with Star having asked the state governments of both NSW and Queensland for tax relief. The NSW government, which has already postponed a substantial increase in poker machine tax and granted an extension to the deadline for introducing mandatory cashless gaming, has reportedly rejected any further relief.
However, the Queensland state government is said to be considering some sort of assistance given that Star only last month held the Grand Opening for its AU$3.6 billion Queen’s Wharf Brisbane development – seen as a critical piece of tourism infrastructure for the city. Queensland is also home to The Star Gold Coast.
Star’s perilous financial position stems from a combination of significantly higher compliance costs imposed due to historical AML and responsible gambling failures, a softer domestic gaming market due to economic tightness, and the absence of international high rollers.
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