Australia’s Star Entertainment Group said Wednesday it would engage with US casino operator Bally’s over a proposal to assume control after an AU$940 million (US$595 million) refinancing proposal from private equity firm Salter Brothers Capital failed to materialize.
With time quickly running out as it looks to secure much-needed long-term liquidity, Star revealed via an ASX filing that it had not received a binding debt commitment letter from Salter Brother and that the refinancing proposal had instead been withdrawn.
According to the filing, extensive engagement with the private equity firm as well as state governments and regulators had made it clear that a number of the conditions precedent in relation to refinancing were unlikely to be filled 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 Star’s non-gaming assets could not be met, it said.
Despite this, Star confirmed that it “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.
As reported by IAG, the Bally’s proposal provides for an AU$250 million cash injection to be raised through an issue of convertible notes subordinated to Star’s principal lenders and convertible into at least 50.1% of Star’s fully diluted ordinary shares.
Bally’s Chairman Soo Kim outlined in letter addressed to Star Chairman Anne Ward that his company would be willing to discuss a larger transaction.
At the time, Kim described the proposal as an “alternative path” to the Salters Brother Capital refinancing path and to a sell-off of The Star Brisbane that Star previously agreed with its Hong Kong partners, Chow Tai Fook Enterprises and Far East Consortium.
While Bally’s is now firmly in the mix, Star acknowledged in Wednesday’s filing that there remains material uncertainty as to the its ability to continue as a going concern given its rapidly dwindling funds.
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