Latest news with #BruceMathieson
Sydney Morning Herald
01-08-2025
- Business
- Sydney Morning Herald
Star back on the brink as Brisbane casino deal collapses
Embattled casino operator Star Entertainment has confirmed the deal to offload its troubled Queen's Wharf casino in Brisbane to its Asian partners has collapsed, leaving it exposed to a loss-making asset and further investment in the operation. Star confirmed on Friday morning that the deadline to renegotiate the sale of its 50 per cent stake in Queen's Wharf to Chow Tai Fook Enterprises and Far East Consortium has passed with no progress from the parties. 'As of this morning, the parties have been unable to reach an agreement on a number of outstanding commercial issues which in turn prevent the finalisation of long form documents,' Star said in a statement to the ASX. Star will be forced to repay more than $36 million to its consortium partners between now and September, but the bigger issue is how it will shoulder its share of future equity contributions and the consortium's debt. Star's cash levels have been bolstered to $234 million by recent asset sales, and an equity injection from US group Bally's and interests associated with major shareholder Bruce Mathieson. Star is also awaiting the outcome of a court decision on fines for breaches of anti-money-laundering regulations that is expected to be in the hundreds of millions of dollars. Star's lawyers told the Federal Court last month that fine of more than $100 million may trigger the group's financial collapse. When Star announced the Brisbane deal in March, it helped the casino operator avoid financial collapse, with the consortium partners offering to pay $53 million for Star's 50 per cent share and hand over other real estate assets in Queensland. Earlier this week, Star released its quarterly report, which precedes audited financial accounts due next month, states that it made a loss before interest, tax, depreciation and amortisation costs of $27 million for the quarter ending June 30, on revenue of $270 million. The casino operator said mandatory carded play at its flagship Sydney casino requiring all patrons to have a physical card – either The Star Club membership or a Player Card – plus $5000 cash limits have continued to drag on its gambling performance, with average daily revenue down 17 per cent since it was introduced in August last year.
The Age
01-08-2025
- Business
- The Age
Star back on the brink as Brisbane casino deal collapses
Embattled casino operator Star Entertainment has confirmed the deal to offload its troubled Queen's Wharf casino in Brisbane to its Asian partners has collapsed, leaving it exposed to a loss-making asset and further investment in the operation. Star confirmed on Friday morning that the deadline to renegotiate the sale of its 50 per cent stake in Queen's Wharf to Chow Tai Fook Enterprises and Far East Consortium has passed with no progress from the parties. 'As of this morning, the parties have been unable to reach an agreement on a number of outstanding commercial issues which in turn prevent the finalisation of long form documents,' Star said in a statement to the ASX. Star will be forced to repay more than $36 million to its consortium partners between now and September, but the bigger issue is how it will shoulder its share of future equity contributions and the consortium's debt. Star's cash levels have been bolstered to $234 million by recent asset sales, and an equity injection from US group Bally's and interests associated with major shareholder Bruce Mathieson. Star is also awaiting the outcome of a court decision on fines for breaches of anti-money-laundering regulations that is expected to be in the hundreds of millions of dollars. Star's lawyers told the Federal Court last month that fine of more than $100 million may trigger the group's financial collapse. When Star announced the Brisbane deal in March, it helped the casino operator avoid financial collapse, with the consortium partners offering to pay $53 million for Star's 50 per cent share and hand over other real estate assets in Queensland. Earlier this week, Star released its quarterly report, which precedes audited financial accounts due next month, states that it made a loss before interest, tax, depreciation and amortisation costs of $27 million for the quarter ending June 30, on revenue of $270 million. The casino operator said mandatory carded play at its flagship Sydney casino requiring all patrons to have a physical card – either The Star Club membership or a Player Card – plus $5000 cash limits have continued to drag on its gambling performance, with average daily revenue down 17 per cent since it was introduced in August last year.
Sky News AU
07-07-2025
- Business
- Sky News AU
Star Entertainment Group to fork out more than $36m if Brisbane Queen's Wharf sale to Hong Kong investors collapses
Star Entertainment Group could be forced to pay almost $37 million if a deal to sell its Brisbane venue fails as negotiations for the newly built casino and hotel complex continue. The casino operator last week told shareholders the pair of Hong Kong investors, Chow Tai Fook Enterprises and Far East Consortium, have threatened to ditch the agreement. Each of the investors own 25 per cent of the Queen's Wharf venue respectively and have looked at purchase the remaining half. An April 30 deadline to sign the deal, which gave Star $53m in cash and consolidated the company's Queensland operations to the Gold Coast, was never met. The Hong Kong investors on June 30 notified Star of its intention to exit the deal which was set to come into effect on Monday. Star on Monday told shareholders both parties have extended the deadline for the deal's termination date until July 31. If a deal is not struck by the deadline, Star will have to repay a $10m cash injection from the Hong Kong investors and reimburse them $26.5m for previous contributions made towards the Brisbane venue. The cash will need to be repaid within 30 days from July 7 while Star will have 60 days to repay the $26.5m if the deal falls through. The failure of the Brisbane casino sale could be devastating for Star as the project has debts of about $1.6b. Star selling the Queen's Wharf complex inspired US gaming giant Bally's Corporation to lob a takeover offer at the casino operator earlier this year. The American company has been critical of the sale and told Sky News' Business Weekend it wanted to keep all of Star's assets. 'We want to keep everything together rather than strip it apart,' Bally's CEO Robertson Reeves said in April. 'We think that things tend to operate better if they're one larger organisation where you can actually generate benefits for each of the properties one by one by making one tweak in one place.' Despite receiving the $300m takeover bid from Bally's alongside local publican Bruce Mathieson, Star still faces crippling financial woes. It awaits a massive fine from financial crime watchdog AUSTRAC that could be upwards of $400m over historical misconduct and faces further regulatory measures aimed at stamping out money laundering. It has received $58m from the sale of its Sydney casino's event centre and another $133m from the Bally's-Mathieson takeover. Star was on the brink of administration earlier this year and was forced into a trading halt after it missed the deadline for its financial results for the first half of the 2025 financial year.
Arabian Post
30-06-2025
- Business
- Arabian Post
Queen's Wharf Deal Breakdown Deepens Star Entertainment Crisis
Star Entertainment is confronting a fresh financial crisis as its partners in the Brisbane Queen's Wharf development have formally sought to cancel the sale of the casino operator's 50 per cent interest in the integrated precinct. This blow lands just days after shareholders approved a $300 million rescue package that was expected to stabilise the business. The termination notice, issued by Hong Kong-based Far East Consortium and Chow Tai Fook Enterprises, will take effect five business days from 30 June unless withdrawn, negating the $53 million agreement signed on 7 March for Star to exit the project. If Star fails to repay $10 million within 30 days, it risks surrendering its 33.3 per cent stake in Tower 1 at the Dorsett hotel to the partners. Star says it remains open to negotiations with its joint‑venture partners to revive the deal. However, the collapse of the Queen's Wharf sale removes a critical lifeline as the group depends heavily on asset disposals and external funding to navigate a deep liquidity crisis. ADVERTISEMENT This capital crunch prompted shareholders last week to green‑light a $300 million rescue deal led by Bally's Corporation and Star's major shareholder, Bruce Mathieson. Under its terms, Bally's is to inject approximately A$200 million and take about 38 per cent of convertible notes, with Mathieson contributing A$100 million in exchange for a further 23 per cent stake. That injection hinges on regulatory approvals and is contingent on preserving key assets, including Brisbane, Sydney and Gold Coast casinos. Even with that deal in place, Star faces mounting legal and regulatory costs, notably potential penalties of up to A$400 million from Austrac for anti‑money laundering failures. The company continues under government scrutiny following multiple inquiries, venue suspensions, and significant losses reported earlier in the year. The fallout from the deal breakdown quickly reverberated through Star's share price: despite a 1.7 per cent uplift on 30 June, shares remain low, trading around A$0.147—far below pre‑crisis levels. Analysts warn that without immediate resolution of asset sale terms, Star may exhaust its capital before the Bally's arrangement is fully executed. The origins of this impasse date back to March when Star agreed to divest its Queen's Wharf stake to the Hong Kong investors. The sale was expected to help Star avoid voluntary administration by unlocking liquidity while allowing it to assume control of its Gold Coast project. That plan now stands imperilled by unresolved commercial disagreements, with insiders characterising the termination as a negotiation tactic. Star's leadership team, facing relentless pressure, is reportedly pursuing simultaneous negotiations with Bally's, Mathieson, its joint‑venture partners, and regulators. Chairman Anne Ward and CEO Steve McCann have emphasised the critical need to replenish liquidity to ensure continuity across Star's operations. Yet, market observers point out that the unravelled Queen's Wharf sale now places greater strain on the rescue package's viability and on Star's capacity to meet statutory obligations and debt repayments. Bally's stands to gain substantial control—expecting upwards of 56 per cent of Star following conversion of notes—marking its first venture outside the U.S.. For its part, the conglomerate remains optimistic after shareholder endorsement and is awaiting regulatory clearances in New South Wales and Queensland. But the loss of the Queen's Wharf agreement introduces new uncertainty over whether the rescue will deliver sufficient capital in time. In parallel, Star continues facing legal peril. Austrac is pushing ahead with its Federal Court action for alleged money‑laundering lapses, a case that could result in a record fine, potentially triggering licence revocations or forced asset sales. The group has already endured suspensions of its casino licences and regulatory probes targeting money laundering, governance failures and insolvency risks. With competing deadlines looming—Queen's Wharf termination, regulatory fine proceedings, debt repayments and conversion triggers—Star is walking a razor's edge. Its ability to secure at least $300 million, alongside asset sale proceeds and regulatory cooperation, will determine whether it can avert collapse or head into voluntary administration.
West Australian
30-06-2025
- Business
- West Australian
Star Entertainment's Queen's Wharf casino deal teeters on verge of oblivion
Embattled Star Entertainment's deal to sell a 50 per cent stake in its $1.6 billion Brisbane casino to Hong Kong investors is on the brink of collapse. Hong Kong joint venture partners Chow Tai Fook Enterprises and Far East Consortium in March said they would take over Star's stake in Queen's Wharf, known as Destination Brisbane Consortium, for $53 million. Under the deal, Star would also hand over its Treasury Hotel and carpark in the Brisbane CBD. But Star on Monday said it had received a notice to terminate the heads of agreement — a preliminary document outlining the key terms of the deal — from the joint venture partners. The deal will terminate next Monday if the notice to Star is not withdrawn. 'Since the recent general meeting, the parties have continued to negotiate with a view to finalising the long form documents but, as of this morning, have not reached an agreement on the outstanding commercial issues,' Star said in a statement to the ASX. 'Despite the receipt of this notice, The Star remains willing to continue negotiations with the joint venture partners.' The news sent shares 6.9 per cent lower to 13.5¢. It comes less than a week after Star shareholders overwhelmingly backed the $300m injection from US casino group Bally's Corporation and billionaire publican Bruce Mathieson by way of convertible notes and subordinated debt. The rescue deal, first announced in April, takes Bally's and Mr Mathieson's combined interest in the casino group to over 50 per cent. Star has been under financial stress as a result of regulatory pressure over breaches of anti-money laundering laws and cost-of-living challenges weighing on Australian households. Its woes have created a cash crisis that left Star reliant on the Bally's-led rescue for survival.
