Entertainment <\/p>\n
Yesterday (2 April) distressed operator Star Entertainment announced that negotiations have fallen through on a massive refinancing proposal. As a result, the company is back in takeover talks with Bally’s Corp. <\/strong><\/p>\n Star said in an ASX filing<\/a> Wednesday that the proposal, tendered by Salter Brothers, has been withdrawn. The proposal, first announced<\/a> on 7 March, would have allowed for relief of up to AU$940 million (\u00a3453.2 million\/\u20ac544 million\/$588.5 million), enough to restructure all of the company\u2019s existing debt.<\/p>\n Star had previously extended an exclusivity period for the negotiations<\/a> in hopes of pushing it over the line, but certain conditions could not be met.<\/p>\n \u201cThe withdrawal of the Refinancing Proposal follows extensive engagement by The Star with Salter Brothers Capital and relevant third parties, including state governments and regulators,\u201d the company said. \u201cAs a result of that engagement, it became apparent that it was unlikely that a number of the conditions precedent to the refinancing proposal would be able to be satisfied, either at all or in sufficient time to address the current liquidity needs of the company.<\/p>\n \u201cIn particular, lender requirements for specific priority arrangements and enforcement rights in relation to their proposed security over non-gaming assets of The Star could not be met.\u201d<\/p>\n Without an agreement, Star is still unable to file its H1 financial report for the period ended 31 December. Its shares remain halted from trading as a result. <\/p>\n The extension of the Salter Brothers negotiations was an indication that Star favoured that route. But following the withdrawal, no other lifelines appear available to keep the company afloat independently. As such, Star has begun \u201cengaging with Bally\u2019s Corporation in relation to the proposal received on 10 March\u201d.<\/p>\n Bally\u2019s in February sent reps to meet with Star and tour its properties<\/a>. Then on 10 March it submitted an AU$250 million offer for 50.1% of the company. That offer expired without action 28 March, but things could move quickly without other options.<\/p>\n Bally\u2019s did not respond to a request for comment Wednesday. <\/p>\n Star\u2019s largest individual shareholder, Bruce Mathieson, lobbied heavily for the Bally\u2019s deal. The Australian Financial Review<\/a> reported on 22 March that Mathieson was willing to inject an additional AU$50 million to help facilitate it, in exchange for a larger stake and board seat.<\/p>\nBally\u2019s talks back on <\/h2>\n
Queen\u2019s Wharf deal a factor <\/h2>\n