Star Entertainment Group in funding dilemma and to remain suspended amid inquiry fallout
Struggling Star Entertainment Group has brought in advisers to assess its liquidity and financial woes, with directors still yet to sign off on this year’s numbers a week after the group was hit with findings from a second damning inquiry.
Shares in the casino operator have been suspended since last Friday, when it received the final report concluding a 2024 inquiry into allegations of systematic failings across the business on the same day it had been due to lodge its full year results.
Star is working through the implications of the recent report — spearheaded by Adam Bell SC — which concluded Star was still “falling short of what is required from a suitable casino operator” despite attempts to bring in new management and drive a huge governance turnaround.
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By continuing you agree to our Terms and Privacy Policy.Updating the market on Thursday, Star told investors it was reviewing its financial and liquidity position with “various advisers” as it tries to finalise its books for the year.
The group also confirmed it had been in contact with “various stakeholders” referencing its liquidity position, which has been at the mercy of years of disrupted operations after being under the spotlight for anti-money laundering failings, and hit with myriad penalties as a result.
Star had also been taking advice on safe harbour provisions, which would allow directors to explore options for a potential restructure.
“The company is working to finalise its FY24 preliminary financial report, although the timing of its release has not been finalised,” Star said on Thursday.
“Upon release of the FY24 preliminary financial report, the company’s shares would resume trading in accordance with the ASX listing rules.”
In the interim the NSW Independent Casino Commission will consider the findings of the latest report to decide what happens next for The Star’s flagship Sydney Casino, though chief commissioner Philip Crawford noted it was “unclear whether The Star could feasibly operate under less supervision, when it was exhibiting past behaviours with its licence still suspended”.
In June, Star recruited former Crown Resorts and Lendlease boss Steve McCann to steer the group through its hopeful rehabilitation.
The company also owns The Star Gold Coast and Treasury Brisbane.
