Bally’s Corp’s AU$300 million (US$180 million) bailout of Australia’s Star Entertainment Group has been described by CBRE Credit Research as a risky move that won’t resolve Star’s ongoing issues and will likely require further capital investment to improve operations.
CBRE analysts have also questioned the probable use of funds from the Bally’s restricted group – comprising its core domestic operations – for an investment that would be outside the restricted group, adding that they would prefer such funds to be directed towards the US operator’s ongoing casino development in Chicago.
As reported by Inside Asian Gaming, the bailout will see Bally’s inject up to AU$300 million into Star by way of convertible notes which, if converted, would give it a controlling 56.7% stake in the one-time local gaming giant.
