{"id":1985842,"date":"2025-08-29T01:30:47","date_gmt":"2025-08-29T01:30:47","guid":{"rendered":"https:\/\/celebrity.land\/en\/?p=1985842"},"modified":"2025-08-29T01:30:47","modified_gmt":"2025-08-29T01:30:47","slug":"star-entertainment-banking-dispute-delays-results-while-ballys-debt-balloons","status":"publish","type":"post","link":"https:\/\/celebrity.land\/en\/star-entertainment-banking-dispute-delays-results-while-ballys-debt-balloons\/","title":{"rendered":"Star Entertainment banking dispute delays results, while Bally&#8217;s debt balloons"},"content":{"rendered":"<p><\/p>\n<div>\n<p class=\"paragraph_paragraph__iYReA\">It&#8217;s the last roll of the dice for what was once one of the country&#8217;s biggest casino groups.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Star Entertainment, barely alive and gasping for breath, was due to deliver a set of results this week that, while extending the enduring pain of long-suffering investors, hopefully would have received the blessing of its directors.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">That is now under a cloud after yet another dispute with its increasingly exasperated bankers, in a re-run of earlier events that again have delayed the earnings results.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Signing off on the accounts would have allowed regulators to begin probity checks of the beleaguered group&#8217;s American suitor, Bally&#8217;s Corporation, before it assumes control.<\/p>\n<figure class=\"ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL ContentAlignment_outdentDesktop__ijbiK Figure_figure__xLyBy Figure_docImage__DSvk4\" data-print=\"inline-media\" data-component=\"Figure\" id=\"105704212\" data-uri=\"coremedia:\/\/imageproxy\/105704212\">\n<div class=\"Figure_content__8xRH4\">\n<div class=\"FigureContent_content__GnImC\">\n<div class=\"ContentImage_ratio__0yYeG\">\n<div class=\"AspectRatio_container__FC_XH\" style=\"--aspect-ratio:1.5\" data-component=\"AspectRatioContainer\"><\/div>\n<\/div>\n<\/div>\n<\/div><figcaption class=\"Figure_caption__fS2lN\">\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">There is a Star Casino at Queen&#8217;s Wharf in Brisbane.<!-- --> <cite>(<span>ABC News: Christopher Gillette<\/span>)<\/cite><\/p>\n<\/figcaption><\/figure>\n<p class=\"paragraph_paragraph__iYReA\">It is acting in concert with local pub baron Bruce Mathieson, and between them, they have injected around $300 million into Star to keep the operation afloat.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Along with the usual personal checks, Bally&#8217;s will also need to pass a financial suitability test.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">It will need to satisfy gaming regulators in New South Wales and Queensland that the now slimmed-down Star will have adequate long-term funding to survive.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The Star purchase is small beer by Bally&#8217;s standards. But the American company has a lot going on, including a massive overhaul of its Chicago casino that has stretched its finances.<\/p>\n<aside class=\"ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL ContentAlignment_floatRight__nfR_t RelatedCard_relatedCard__4Im5s interactive_focusContext__yRhc_ interactive_defaults__AKxUU interactive_hoverContext__LDUDX interactive_defaults__AKxUU\" data-component=\"RelatedCard\" data-uri=\"coremedia:\/\/article\/105704336\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.abc.net.au\/news\/2025-08-14\/star-casino-queens-wharf-regulatory-hurdles-employees\/105646284\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\"><\/p>\n<h3 class=\"Typography_base__sj2RP RelatedCard_heading__S_nm2 Typography_sizeMobile18__eJCIB Typography_lineHeightMobile24__crkfh Typography_bold__FqafP Typography_serif__qU2V5 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Employees left with questions as Star offloads stake in Queen&#8217;s Wharf<\/h3>\n<p><\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Star Entertainment has reached a deal with Hong Kong partners Chow Tai Fook Enterprises and Far East Consortium to offload its 50 per cent stake in the casino precinct.<\/p>\n<\/aside>\n<p class=\"paragraph_paragraph__iYReA\">Its <a rel=\"nofollow\" target=\"_blank\" class=\"Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/d18rn0p25nwr6d.cloudfront.net\/CIK-0001747079\/d8890120-4a60-4409-8759-9f37b49b985c.pdf\" data-component=\"Link\">most recent accounts show a company with more than $US7 billion ($11 billion) in liabilities<\/a>, half of which is listed as long-term debt alongside a large chunk of lease liabilities.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The debt burden is around 10 times the market value of Bally&#8217;s Corporation.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Liquidity is also tight for the US company. Almost $US1 billion in short-term debt must be repaid within the next 12 months, covered by just $US490 million in easily saleable assets.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In February, these strains were enough to prompt ratings agency Fitch to downgrade Bally&#8217;s debt to B-.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">That may hinder Bally&#8217;s ambitions to quickly turn around the Star&#8217;s loss-making operations and could complicate the business plan that it must present to Australian regulators as part of its probity check.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">But Star&#8217;s directors face more immediate challenges.<\/p>\n<h2 class=\"Typography_base__sj2RP Heading_heading__VGa5B future_heading__Gcudw Heading_default__Z3p_p Typography_sizeMobile20__NUDn4 Typography_sizeDesktop32__LR_G6 Typography_lineHeightMobile24__crkfh Typography_lineHeightDesktop40__BuoRf Typography_marginBottomMobileSmall__6wx7m Typography_marginBottomDesktopSmall__CboX4 Typography_bold__FqafP Typography_colourInherit__dfnUx Typography_normalise__u5o1s\" data-component=\"Heading\">Angry bankers on the hunt<\/h2>\n<p class=\"paragraph_paragraph__iYReA\">Just weeks ago, Star&#8217;s former partners in the troubled Queen&#8217;s Wharf development in Brisbane <a rel=\"nofollow\" target=\"_blank\" class=\"Link_link__kR0xA Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2025-08-01\/starentertainment-casino-misses-deadline-brisbane-queens-wharf\/105591244\" data-component=\"Link\" data-uri=\"coremedia:\/\/article\/105591244\">were threatening to walk away from their planned purchase at the final step<\/a>, jeopardising Star&#8217;s tenuous grip on life.<\/p>\n<figure class=\"ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL ContentAlignment_outdentDesktop__ijbiK Figure_figure__xLyBy Figure_docImage__DSvk4\" data-print=\"inline-media\" data-component=\"Figure\" id=\"105704200\" data-uri=\"coremedia:\/\/imageproxy\/105704200\">\n<div class=\"Figure_content__8xRH4\">\n<div class=\"FigureContent_content__GnImC\">\n<div class=\"ContentImage_ratio__0yYeG\">\n<div class=\"AspectRatio_container__FC_XH\" style=\"--aspect-ratio:1.5\" data-component=\"AspectRatioContainer\"><img decoding=\"async\" alt=\"Aerial shot of the riverside Queens Wharf development.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\" sizes=\"100vw\" src=\"https:\/\/live-production.wcms.abc-cdn.net.au\/9e5e6490e09560124f26ffda63b9740d?impolicy=wcms_crop_resize&amp;cropH=2000&amp;cropW=3000&amp;xPos=0&amp;yPos=242&amp;width=862&amp;height=575\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/div>\n<\/div>\n<\/div>\n<\/div><figcaption class=\"Figure_caption__fS2lN\">\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Star&#8217;s Queen&#8217;s Wharf development has faced financial struggles.<!-- --> <cite>(<span>Supplied: Star Entertainment Group<\/span>)<\/cite><\/p>\n<\/figcaption><\/figure>\n<p class=\"paragraph_paragraph__iYReA\">Now, the banking syndicate has directors against the wall.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The banks are refusing to grant waivers on covenants over $430 million worth of loans, which would prevent directors from signing off on the accounts.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Sources close to the transaction believe the banks are attempting either to extract more assets as security over the debt or to impose even more punitive fees on the company.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Last year, a desperate Star was strongarmed into paying a whopping 13.5 per cent on its refinanced debt, some of which included a 1 per cent quarterly payment to waive covenants.<\/p>\n<aside class=\"ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL ContentAlignment_floatRight__nfR_t RelatedCard_relatedCard__4Im5s interactive_focusContext__yRhc_ interactive_defaults__AKxUU interactive_hoverContext__LDUDX interactive_defaults__AKxUU\" data-component=\"RelatedCard\" data-uri=\"coremedia:\/\/externallink\/105636284\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/iview.abc.net.au\/show\/family-next-door?utm_source=abc_news_embed&amp;utm_medium=&amp;utm_campaign=%5Bscreen%3Atvmain+abciview%3Athe-family-next-door%3A0725%3Aabc_news_embed%5D&amp;utm_term=%5Bscreen%3Atvmain+abciview%3Athe-family-next-door%3A0725%3Aabc_news_embed%5D&amp;utm_content=%5B20250810_stream_now%3Aimage%3Aabc_news_embed%3Ascreen%3Atvmain+abciview%3Athe-family-next-door%3A0725%5D\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\"><\/p>\n<h3 class=\"Typography_base__sj2RP RelatedCard_heading__S_nm2 Typography_sizeMobile18__eJCIB Typography_lineHeightMobile24__crkfh Typography_bold__FqafP Typography_serif__qU2V5 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Stream now on ABC iview <\/h3>\n<p><\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The enigmatic Isabelle arrives in the quiet seaside cul-de-sac of Pleasant Court \u2014 and suspicions quickly rise. Stream all episodes now on ABC iview.<\/p>\n<\/aside>\n<p class=\"paragraph_paragraph__iYReA\">Those waivers were believed to run to the end of September. Without them, the company will be in breach of its debt covenants and directors cannot sign off on the accounts. Instead, they will be forced to release an unaudited version.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In a statement to the ASX, the company said that it previously had made it clear that &#8220;it continued to rely on the support of its lenders&#8221;, which included covenant waivers after June 30.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">It told the exchange that it was in discussions with lenders, but had so far refused to accept the terms, which the company found unacceptable.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">For Star to keep the Bally&#8217;s deal on track, it may have to hand over extra cash.<\/p>\n<h2 class=\"Typography_base__sj2RP Heading_heading__VGa5B future_heading__Gcudw Heading_default__Z3p_p Typography_sizeMobile20__NUDn4 Typography_sizeDesktop32__LR_G6 Typography_lineHeightMobile24__crkfh Typography_lineHeightDesktop40__BuoRf Typography_marginBottomMobileSmall__6wx7m Typography_marginBottomDesktopSmall__CboX4 Typography_bold__FqafP Typography_colourInherit__dfnUx Typography_normalise__u5o1s\" data-component=\"Heading\">But wait, there&#8217;s more<\/h2>\n<p class=\"paragraph_paragraph__iYReA\">US group Bally&#8217;s may have bought into the Star&#8217;s ongoing corporate soap opera for a song.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">But its own stretched financial position limits its tolerance for added financial pain.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The biggest threat, which could be known within a fortnight, is the size of the fine that will be imposed on Star for its extensive history of breaching the Anti-Money Laundering and Terrorism Financing Act.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The case is before the Federal Court, and AUSTRAC \u2014 the federal agency responsible for policing the laws \u2014 has argued that a fine of around $400 million would not be excessive, given Star&#8217;s four years of hosting known criminal syndicates out of Macau.<\/p>\n<p><span data-component=\"Loading\" data-print=\"inline-media\" class=\"Loading_loading__21MZU\"><span class=\"Loading_spinner__zmkAw Loading_spinnerSize32__Z_XId Loading_spinnerColourBrand__CqEIF\"\/><span class=\"ScreenReaderOnly_srOnly__bnJwm\" data-component=\"ScreenReaderOnly\" role=\"alert\" aria-live=\"assertive\">Loading<\/span><\/span><\/p>\n<p class=\"paragraph_paragraph__iYReA\">Star has made provisions for a fine of around $100 million and has begged the court for mercy, arguing that anything more could tip the company into receivership.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">That&#8217;s unlikely to sway the court, particularly given Star&#8217;s rival, Crown Entertainment, was slapped with a <a rel=\"nofollow\" target=\"_blank\" class=\"Link_link__kR0xA Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2023-07-11\/crown-resorts-450-million-fine-money-laundering\/102588950\" data-component=\"Link\" data-uri=\"coremedia:\/\/article\/102588950\">$450 million fine just two years ago<\/a> for allowing the same criminal gang to access its gaming rooms.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Insiders say Bally&#8217;s chairman, Soo Kim, has confided that anything more than $200 million could be a deal breaker.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">A decision on the fine is expected sometime in September, which allows plenty of time for more drama.<\/p>\n<\/div>\n<p><em> \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n<p><em> \u2018 Some details of this article were extracted from the following source www.abc.net.au \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s the last roll of the dice for what was once one of the country&#8217;s biggest casino groups. Star Entertainment, barely alive and gasping for breath, was due to deliver a set of results this week that, while extending the enduring pain of long-suffering investors, hopefully would have received the blessing of its directors. That [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1985843,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[357466,357464,357468,357465,348288,357463,44569,357469,356517,310033,22111,357467,51925],"class_list":["post-1985842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-asic","tag-asx","tag-austrac","tag-australian-securities-and-investments-commission","tag-ballys","tag-ballys-corporation","tag-casino","tag-fine","tag-money-laundering","tag-queens-wharf","tag-star","tag-star-casino","tag-star-entertainment"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2025\/08\/Star-Entertainment-banking-dispute-delays-results-while-Ballys-debt-balloons.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/1985842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=1985842"}],"version-history":[{"count":0,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/1985842\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/1985843"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=1985842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=1985842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=1985842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}