The Star Entertainment Group (ASX: SGR) has hit another roadblock in its efforts to refinance its debt, with Salter Brothers Capital withdrawing its refinancing proposal. The proposal had the potential to provide The Star with enough liquidity to refinance all existing debt, but key conditions couldn’t be met—particularly around lender requirements for security over non-gaming assets.
What Happened?
Despite extensive engagement with Salter Brothers Capital, state governments, and regulators, The Star was unable to secure a binding debt commitment letter. With the proposal now off the table, the company remains in a precarious financial position.
What’s Next?
- Ongoing search for liquidity solutions: The Star is exploring other options, including discussions with Bally’s Corporation following a proposal received on 10 March 2025.
- Financial report delay: The company still can’t lodge its half-year financial report for the period ending 31 December 2024 due to the uncertainty surrounding its refinancing.
- Survival concerns linger: Without a viable solution, The Star faces material uncertainty about its ability to continue as a going concern.
This latest setback highlights the urgency of securing fresh capital. Investors will be watching closely to see if The Star can pull off a financial turnaround before liquidity concerns become critical.
