Star Entertainment Weighs Bally’s Bid Amid Financial Turmoil
- YM Family
- Mar 10
- 2 min read
Star Secures Liquidity and Restructures Debt Amid Ongoing Financial Uncertainty"
Casino operator Star Entertainment is considering an offer from US gaming giant Bally’s, which could provide at least $250 million in funding in exchange for a controlling stake in the company.
Last Friday, Star took critical steps to stabilise its financial position, reaching an agreement with Hong Kong investors to divest from Brisbane’s Queen’s Wharf while securing full ownership of its Gold Coast casino precinct. Alongside this, the company arranged bridging finance and a refinancing deal, granting it access to up to $940 million in debt.
On Monday morning, Star confirmed receiving an unsolicited proposal from Bally’s to raise at least $250 million in capital.
Bally’s described its bid as an “alternative path” to the measures Star had announced the previous Friday.
“We firmly believe our approach—offering long-term capital and operational expertise—represents the best option for Star and its shareholders,” Bally’s stated in a proposal letter submitted to the stock exchange.
As part of the offer, Bally’s has proposed underwriting a $250 million capital raising in exchange for a 50.1 per cent stake in Star. The letter also indicated the US firm was open to a larger deal, depending on discussions regarding Star’s liquidity and capital requirements.
Financial Restructuring Efforts
In a separate move last week, Star finalised an agreement with Hong Kong-based investors Far East Consortium International and Chow Tai Fook Enterprises, selling its 50 per cent stake in the Brisbane Queen’s Wharf development for $53 million.
Star’s shares have remained suspended from trading on the Australian Securities Exchange after the company failed to submit its half-year financial results, warning that it could not continue operations without urgent funding.
Securing Short-Term Liquidity
In recent months, Star repeatedly cautioned that its survival depended on securing financial relief, raising concerns about potential voluntary administration if no deal materialised.
With its shares still suspended, the company needed to refinance its existing corporate debt and secure sufficient liquidity to file its financial statements with the ASX.
Late Friday, Star announced it had secured a $250 million bridging loan from alternative investment firm King Street Capital Management. This short-term funding is intended to support liquidity while Star works toward a long-term refinancing arrangement.
Additionally, the company secured a refinancing proposal from an undisclosed lender, which would enable it to restructure all existing debt, increasing its total available debt capacity to $940 million.
Under a separate agreement, Star’s joint venture partners will acquire its stake in the Queen’s Wharf project for $53 million. This relieves Star of more than $200 million in future financial obligations tied to the development.
As part of the broader restructuring plan, Far East Consortium International and Chow Tai Fook Enterprises will also sell back their interests in hotel towers at The Star Gold Coast, giving Star full ownership.