Troubled casino operator Star Entertainment Group Ltd (ASX:SGR) has been suspended from trading on the ASX after it failed to submit its half year financial report by its February 28 due date.
In a statement, Star – which runs casinos in Sydney, Brisbane, and on Queensland’s Gold Coast – told investors it would be unlikely to be able to submit these accounts without achieving a financing deal that would allow it to refinance the company’s current corporate debt and provide additional liquidity.
Star’s board met over the weekend to discuss potential funding deals to sidestep the possibility of collapse, as the company reels under the pressures of revenue slumps and legal action from regulators.
The company has been under scrutiny from the latter since a 2021 state government inquiry in New South Wales revealed a failure by Star’s board to respond appropriately to anti-money laundering and counter terrorism perils.
The unexpectedly high cost of its Queen’s Wharf project in Brisbane has also weighed on the company’s finances.
This precinct, which Star owns alongside Chow Tai Fook Enterprises and Far East Consortium, holds a debt of $1.6 billion.
However, having failed to cut a deal during the weekend talks, Star reiterated concerns – in its statement on Monday – that the group may not have the capacity to continue as an entity, given its financial difficulties and failure to cut a deal to repair this.
When it last traded on Friday, the Star’s shares sold at 11 cents each.
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