Star Entertainment Group has announced a non-binding agreement with WhiteHawk Capital Partners regarding a proposed debt refinancing. The agreement aims to comprehensively address the group’s existing debt obligations. Additionally, it seeks to provide supplementary liquidity to bolster the ongoing turnaround strategy implemented by the new management team.
The proposed refinancing would, if finalised, cover all of Star Entertainment’s current debt. It would also furnish the company with extra funds to facilitate its operational restructuring. Star Entertainment Group operates casinos and entertainment facilities across Australia.
Currently, Star Entertainment is also engaged in discussions with its present lenders. The negotiations concern covenant waivers for the December period, intended to allow sufficient time for the refinancing process to conclude. However, the company has cautioned that there is no certainty that these waivers will be granted by the existing lenders.
Following the announcement, shares in Star Entertainment Group experienced a rise, last trading up by 4 per cent. The refinancing represents a critical step in the company’s efforts to stabilise its financial position and execute its turnaround strategy under new leadership.
