Shares in Star Entertainment have been suspended from trading on the stock exchange after it failed to lodge its financial results.
Exchange operator ASX automatically suspended shares in Star on Monday morning after the casino operator missed Friday’s deadline for issuing its earnings update for the first half of the financial year.
The future of Star Entertainment and its thousands of workers remains uncertain as the company’s efforts to secure a financial lifeline go down to the wire.
The company, which operates casinos in Brisbane, the Gold Coast and Sydney, confirmed on Monday morning that it would not be able to lodge its accounts until it secured a funding package.
Star said it required “a refinancing commitment that would enable The Star to refinance all the Group’s existing corporate debt, as well as to provide additional liquidity”, and said it would keep the market informed of “material developments”.
There was no reference to funding proposals it had received or expected to eventuate.
“There remains material uncertainty as to the Group’s ability to continue as a going concern,” Monday’s statement reiterated.
If funding isn’t secured, Star will face the prospect of entering voluntary administration, which would see independent administrators appointed to manage affairs on behalf of creditors, and attempt to rescue operations.
The casino group could be broken up in the process, as administrators would search for buyers for individual assets, if the company can’t be rescued as a whole.
Workers’ future uncertain as pay day looms
Andrew Jones from the United Workers Union said staff are due to be paid on Wednesday.
“Star put out a notice to staff on Friday assuring staff that they’ll be paid this week, but that’s yet to be seen, obviously,” Mr Jones told Radio National Breakfast.
The union was not aware of any requests for staff to take pay cuts or give up benefits to help keep the business afloat.
“They’re not highly paid people — they’re struggling with the cost of living as everyone else is and they can’t afford to take a pay cut.”
The potential collapse of the company puts the jobs of about 9,000 workers across its three casinos on the line.
“At this stage, we look like we’re heading towards an administration sometime this week,” Mr Jones noted.
“There’s a lot of concern and a lot of frustration at being caught up in this.
“The situation for Star workers in terms of this current financial crisis dates back to September of last year, but for many Star workers, they’ve been dealing with Star’s uncertainty for two to three years.”
If administrators are appointed, Mr Jones said he expects state governments in New South Wales and Queensland will work with unions, lenders and administrators on efforts to protect jobs.
“If the company goes into administration, [workers] want the support of their government to ensure the doors stay open.”
0
20
20
