Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Bally’s Corporation, a casino operator based in the United States and owned by Standard General, is considering investing in Star Entertainment, a struggling gaming business in Australia. Bally’s management, including Chairman Soo Kim, recently traveled to Australia to hold talks with Star’s executives, bankers, and significant shareholders, according to The Australian Financial Review.
The meetings involved site visits to Star’s properties in Brisbane, Gold Coast, and Sydney. Bally’s interest follows Standard General’s recent AU$7.2 billion ($4.6 billion) acquisition of Bally’s, strengthening its financial backing. A source familiar with the discussions noted, “They are used to turnaround situations and could bring operational expertise.”
Star Entertainment is facing significant financial hurdles, revealing on January 8 that it has only months of liquidity left. CEO Steve McCann confirmed that the company is operating under “safe harbor” protections, shielding its directors from insolvency liabilities while seeking capital solutions.
Star’s Urgent Search for Capital
Star is looking at a number of funding possibilities, such as asset sales, fresh debt, or equity injections, to stay afloat. According to reports, Star’s lenders have been contacted by American investment firm Oaktree Capital to discuss potential agreements.
The business has asked for a $100 million bridge loan but has not yet been able to reach a recapitalization arrangement with secured lenders. To alleviate financial hardship, Star has also asked the government for tax deferrals.
5BTC or 111% + 111 Free Spins!
New players only. Exclusive 111% Welcome Bonus + 111 Free Spins
Star’s financial situation has gotten worse due to a mix of regulatory obstacles, dwindling consumer spending, and unforeseen expenses associated with its new resort in Brisbane. AUSTRAC, Australia’s financial crime authority, may also impose financial penalties on the business for noncompliance.
While Bally’s has no previous operations in Australia, its portfolio includes 19 casinos across 11 U.S. states, a New York golf course, and a Colorado horse racetrack. The company also holds multiple sports betting licenses.
With Star preparing to release its half-year financial results next week, lenders are closely monitoring its financial position ahead of an upcoming covenant test.
The post Bally’s Considers Investment in Star Entertainment During Financial Crisis appeared first on iGaming.org.