Australia’s Star Entertainment Group said Wednesday it would engage with US casino operator Bally’s over a proposal to assume control after an AU$940 million (US$595 million) refinancing proposal from private equity firm Salter Brothers Capital failed to materialize.
With time quickly running out as it looks to secure much-needed long-term liquidity, Star revealed via an ASX filing that it had not received a binding debt commitment letter from Salter Brother and that the refinancing proposal had instead been withdrawn.
According to the filing, extensive engagement with the private equity firm as well as state governments and regulators had made it clear that a number of the conditions precedent in relation to refinancing were unlikely to be filled either at all or in sufficient time to address the current liquidity needs of the company.
