Potential Trouble for Star's Bally Deal Due to Financial Disputes with Creditors in Australia
The Star Entertainment Group, an Australian-based casino operator, has requested covenant waivers for a loan worth AU$430 million (approximately US$279 million). In a recent development, the company has acknowledged its continued discussions with the SFA lender group regarding potential covenant waivers, which are planned post-30 June 2025.
The terms proposed by the lenders for the covenant waivers have been deemed "unacceptable" by The Star Entertainment Group for the September and December quarters of 2025. The report does not provide details about the specific reasons for the unacceptable terms.
In an effort to strengthen its financial position, The Star Entertainment Group is relying on the support of its lenders under a Senior Facility Agreement (SFA). The rescue package, led by US casino operator Bally's Corp, is also part of the company's strategies.
The negotiations between The Star Entertainment Group and the SFA lender group involve mergers and acquisitions, as well as potential covenant waivers for the dates of 30 September and 31 December 2025. The SFA lenders group typically includes various banks and financial institutions involved in the syndicate, but specific names are not publicly disclosed.
In a related development, The Star Entertainment Group has agreed with its Hong Kong partners to offload its Queen's Wharf Brisbane assets and associated debt. The entity involved in the negotiations is Bally's, which is part of the rescue package.
The report does not mention any potential consequences if the unacceptable terms are not agreed upon. Moreover, it does not provide any information about the current financial status of The Star Entertainment Group.
This news is reported by Ben Blaschke for Inside Asian Gaming.
