Australia’s Star Entertainment gets debt lifeline, to announce results on Thursday

(Reuters) -Australia’s embattled Star Entertainment said on Wednesday it will announce annual results a day later after securing a crucial debt package, which provides the casino group with a much-needed lifeline.

The gaming firm’s corporate lenders have agreed to provide it with a new facility of up to A$200 million ($137.44 million), with its existing A$450 million facility being reduced to A$334 million.

The A$200 million financing would be in two tranches, with an immediate A$100 million injection to deal with cost blowouts the gaming group is facing at its new Queens Wharf resort in Brisbane.

The deal comes after weeks of discussions between the firm’s chief executive, its lenders, state governments and other stakeholders.

The first tranche is expected to be available, subject to conditions, from the end of October through Dec. 20.

The second tranche would require Star to meet more extensive conditions including raising additional capital of at least A$150 million and providing information around the firm’s long-term strategy.

Star’s future currently hangs in the balance after an inquiry found the casino operator had been going through issues around its leadership and culture, and that it remains unfit to operate its Sydney casino.

Star, which owns casinos in Sydney, Brisbane and the Gold Coast saw its shares getting suspended from trading on Sept. 2 by the Australian bourse operator after it failed to submit its annual report for fiscal 2024 by the required due date. Its shares are expected to resume trading later in the week.

($1 = 1.4552 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Mrigank Dhaniwala)