Entertainment
Bally’s Corporation is reportedly considering an investment in Star Entertainment Group. The Australian Financial Review (AFR) reported that representatives of the former company traveled to Australia to negotiate with representatives of Star Entertainment.
Bally’s Might Be Interested in the Australian Casino Giant
According to the AFR, the delegation to Australia was led by Bally’s chair Soo Kim who met with representatives of Star Entertainment’s management, lenders and shareholders. The report further states that the Bally’s visitors went to see the Australian casino company’s properties in Sydney, Brisbane and Gold Coast.
Despite Star’s precarious financial position, Bally’s interest in the company could make a lot of sense. Bally’s itself was recently overtaken by Standard General, which is known for its efforts to buy and uplift struggling businesses. Standard General’s strategy and Bally’s industry experience could potentially turn the tables and help Star Entertainment recover.
This could be welcome news for the embattled Australian company, which has seen its business go downhill despite all efforts to implement remediation measures.
Several Parties Have Been Considering Backing Star
Bally’s, however, isn’t the only company reported to have an interest in Star Entertainment. Recent reports suggested that Blackstone is likewise eyeing the situation and looking for an opportunity to buy out Star for cheap.
Oaktree Capital, on the other hand, just extended a debt financing proposal to Star Entertainment, promising to provide a total of AUD 650 million in two debt facilities with a term of 5 years. Although the financing is subject to many conditions, it could be a game-changer for Star.
Cerberus Capital Management has also been eyeing purchasing some of Star’s debt.
Star Entertainment’s Financial Struggles Continue
Star Entertainment Group has been struggling financially ever since its regulatory clashes with the government. Authorities learned that the company management had been lax when it came to following the rules, leading to a multitude of breaches.
Among other things, Star Entertainment was accused of running an illegal cage for high-rollers, which was allegedly used by foreign agents to launder money.
Star Entertainment’s remediation plans have so far yielded mixed results and have been largely unsuccessful in improving the company’s financial position.
Star, which announced that its cash reserves are running dangerously low, recently started exploring a variety of fundraising options. Among other things, the company sold certain non-core assets amid its search for liquidity.
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Fiona Simmons