Star Entertainment chief executive Steve McCann has warned the casino group is still experiencing negative monthly cash flows, and begged shareholders and lenders for patience as he attempts to turn around the business.
The company announced an unaudited group EBITDA loss of $27 million for the first four months of the new financial year – a result that adds pressure to Star as it tries to raise a further $150 million in capital from external sources. Securing $150 million in funding is one of the conditions for Star to access the second tranche of a $200 million loan.
“We are at a critical point in our liquidity, with the business currently experiencing material negative cashflow on a monthly basis,” Mr McCann told shareholders at the annual general meeting on Thursday.
