Star confirms collapse of Salter Brothers lifeline
Australian casino group Star Entertainment has confirmed that the group’s AU$750m refinancing deal with Salter Brothers Capital has collapsed, adding that it was now exploring other options, including Bally’s in offer for a 50.1 per cent stake in the group.
Salter’s refinancing proposal had the potential to provide The Star with sufficient liquidity to refinance all
of the group’s existing debt.
The operator said: “The Star has continued to work diligently with Salter Brothers Capital in relation to the Refinancing Proposal but has not received a binding debt commitment letter and the Refinancing Proposal has now been withdrawn. The withdrawal of the Refinancing Proposal follows extensive engagement by The Star with Salter Brothers Capital and relevant third parties, including State Governments and regulators.
“As a result of that engagement, it became apparent that it was unlikely that a number of the conditions precedent to the Refinancing Proposal would be able to be satisfied, either at all or in sufficient time to address the current liquidity needs of the Company. In particular, lender requirements for specific priority arrangements and enforcement rights in relation to their proposed security over non-gaming assets of The Star could not be met.
“The company continues to be unable to lodge its half year financial report for the period ended 31 December 2024 in the absence of an appropriate refinancing solution. The Company continues to explore liquidity solutions that might materially increase the Group’s liquidity position in the medium term, including engaging with Bally’s Corporation in relation to the proposal received on 10 March 2025. However, there remains material uncertainty as to the group’s ability to continue as a going concern.”
