Star rescue takes a twist as new offer lands: report

Ailing casino operator Star Entertainment’s rescue efforts have taken a new twist, with the company reportedly receiving a new funding offer from a US suitor.

Star avoided collapse on Friday after signing a deal to offload its stake in its Queens Wharf casino resort in Brisbane to its Hong Kong-based Far East Consortium and Chow Tai Fook Enterprises. Under that deal, Star would receive a $53 million payment for agreeing to sell its 50 per cent stake to its partners in Queens Wharf, allowing them to take full ownership of the venue.

However, a report in The Australian newspaper said that Star’s management has received a rival rescue offer from US-based gambling, betting and entertainment company Bally’s Corporation.

Bally’s has reportedly pitched an offer (to inject a minimum of $250 million into Star immediately) as an alternative to the Queens Wharf deal, offering Star a path to longer-term funding and securing the future of almost 9000 jobs in NSW and Queensland.

The deal would reportedly give Bally’s a minimum stake of 50.1 per cent in Star.

Star was contacted for comment on Monday.

On Friday, Star said it had also entered into an agreement with King Street Capital Management for $250 million in bridging finance to underpin its finances until the end of April and added it was also exploring a financing proposal that could provide up to $940 million in debt capacity.

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Star’s shares remain suspended and last traded at 11 cents. The company’s board is yet to sign off on its latest financial accounts.