The Star Sydney casino will continue to operate under a suspended licence until the end of September, as Star Entertainment continues its remediation program.
Star Sydney has operated with a suspended licence and under a state appointed manager since October 2022, with the current appointment expiring on 31 March.
In a statement Tuesday, Star Entertainment said that the special manager’s appointment has been extended to 30 September, unless terminated earlier by the New South Wales Independent Casino Commission (NICC).
The NICC decided to extend the casino’s licence suspension and manager appointment after the Star said that it does not seek a licence determination at this time.
The Star outlined its pathway to licencing suitability in a submission to the NICC two weeks ago.
Since being found unsuitable for licensure in 2022 due to widespread anti-money laundering compliance failures, Star Entertainment has implemented a remediation program covering governance, culture, financial crime, safer gambling and risk management.
Bally’s Corporation is now the largest shareholder of Star Entertainment Group with a 38 per cent stake, having teamed up last year with Investment Holdings Pty to invest A$300 million in the casino operator. Investment Holdings owns a 23 per cent stake in Star Entertainment Group.
On Monday, Star Entertainment secured a US$390 million / A$550 million refinancing deal with WhiteHawk Capital Partners, having begun discussions with the investment firm on 26 February.
The financing will enable Star Entertainment to refinance all of its existing debt and retain sufficient liquidity for ordinary course of operations.
Implementation of the refinancing is subject to customary closing conditions, including receipt of required regulatory approvals and completion of the disposal of the group’s interest in Destination Brisbane Consortium (DBC).
The company is working to complete the refinancing by no later than 15 May, in order to satisfy the conditions of the waiver given on 27 February by the company’s existing senior lenders.
Shares in Star Entertainment Group Ltd. (ASX:SGR) closed 4.17 per cent lower at A$0.12 per share in Sydney Tuesday.