Star Entertainment Group Ltd (ASX: SGR) shares remain halted after the casino business gave investors an update regarding its attempts to sort out refinancing.
The casino business had been working throughout March 2025 on a refinancing proposal to provide the company with total debt capacity of up to $940 million, which would have been enough to refinance all of its existing debt.
Star had been working with Salter Brothers Capital (SBC) towards a binding offer during a period of exclusivity. The business gave an update about those discussions today.
Refinancing proposal update
Star said in an ASX announcement that it had worked with Salter Brothers Capital, but it has not received a binding debt commitment letter and the refinancing proposal has now been withdrawn.
This came after discussions with SBC and relevant third parties, including state governments and regulators.
Star explained that it became apparent that it was unlikely a number of the conditions included in the proposal would be able to be satisfied, either at all or in sufficient time to address the current liquidity needs of the company.
Star noted that lender requirements for “priority arrangements and enforcement rights in relation to their proposed security over non-gaming assets of The Star could not be met”.
Ongoing difficulties
The ASX share said it continues to be unable to lodge its half-year financial report for the period ended 31 December 2024 because it hasn’t been able to find an appropriate refinancing solution.
It’s exploring financing solutions that may materially increase its liquidity position in the medium-term, including engaging with Bally’s Corporation.
Balley’s, a US casino business, has proposed additional funding for Star. It also said it remains “very open to discussing a larger transaction depending on… discussions with respect to Star’s liquidity and capital needs.” It said it has experience in helping turn around casinos.
Star said there remains “material uncertainty as to the group’s ability to continue as a going concern.”
Time will tell what happens with Star (shares).
