Star Entertainment Halts Trading, Stoking Fears Collapse is Near

• Casino operator halted trading of its stock in Sydney
• Gaming company won’t deliver half-year results as scheduled

Shares of Star Entertainment were halted in Friday trading in Sydney, sparking fears that the ailing casino operator won’t deliver its half-year results as scheduled and that the next news from the company will be that it can’t continue as a going concern.

This is the second time in six months Star hasn’t delivered financial results on schedule, and if it doesn’t release data for the six months ending Dec. 31, 2024, the Australian Securities Exchange (ASX) could suspend the stock. In a statement provided to the ASX and posted on its investor relations website, Star said it expects to receive some liquidity pitches on Friday.

Star Entertainment Group refers to recent media speculation, and confirms that the Company is continuing to explore possible liquidity solutions that might materially increase the Group’s liquidity position, and anticipates that it will receive one or more liquidity proposals during the course of today,” according to the statement.

During Sydney’s Thursday trading session, Star told investors that State Street — one of the world’s biggest fund managers — slashed its stake in the company to 147.97 million shares from 177.17 million shares. The Boston-based asset manager now controls 5.16% of the embattled Aussie casino operator.

How Star Liquidity Proposals Could Shake Out

There are no guarantees that any proposals to save or acquire Star will arrive, but there’s no shortage of speculation to that effect. In late January, reports surfaced that Cerberus Capital Management was in talks with Star creditors about buying some of the operator’s debt.

As was reported last week, executives from Bally’s (NYSE: BALY.T) were recently in Australia to meet with Star management, stirring rumors that the regional casino operator could be interested in buying its Australian counterpart. Still, some speculation needs to become reality to save Star.

“As noted in the Company’s recent ASX announcements, there remains material uncertainty as to the Group’s ability to continue as a going concern,” according to the statement.

Potential Headwinds Abound

Star’s holdings include its flagship, namesake property in Sydney as well Star Brisbane and the Star Gold Coast. While those may be desirable assets to some prospective suitors, eagerness to buy could be damped by Star’s flimsy cash position and its host of regulatory woes.

If liquidity proposals don’t arrive or are not accepted, Star shares could be suspended by the ASX as soon as Monday, March 3.