Star Entertainment Group shareholders approve US$195m rescue package
The rescue bid is led by Bally’s Corporation.
Australia.- The Star Entertainment Group has secured shareholder approval for a AU$300m (US$195m) rescue package. According to filings with the Australian Securities Exchange, the proposal received over 98 per cent of votes in favour at a shareholder meeting today (June 25).
The capital injection is led by US-based Bally’s Corporation and the Australian investment firm Investment Holdings, Star’s current largest shareholder. Investment Holdings will subscribe for AU$100m (US$60.5m) of the aggregate amount.
The rescue deal consists of multi-tranche convertible notes and subordinated debt instruments. If the notes are converted into shares, Bally’s and Investment Holdings’ respective interests will exceed 50 per cent. If the notes are all converted, Bally’s will hold up to 38 per cent of The Star’s issued capital while Investment Holdings will hold 23 per cent, including its existing holding.
Addressing shareholders before the vote, Star Entertainment chair Anne Ward, said: “The strategic investments by Bally’s and Investment Holdings provide cash funding and assist The Star’s ability to continue as a going concern, helping to avoid outcomes such as voluntary administration, which is likely not to be in the best interests of shareholders.”
Bally’s said it has applied for operational approval from the New South Wales and Queensland governments and regulators. Soo Kim, Bally’s chairman, told Reuters: “We look forward to the completion of our probity review so that we can get on with the critical mission to put The Star on a sustainable path. We are raring to get on with it.”
Star Entertainment Group has announced a series of executive management and subsidiary director appointments. Subject to approvals, Jennifer Cronin was appointed as interim chief executive officer (CEO) for a maximum term of 12 months while The Star continues its search for a permanent CEO. The company has also appointed Rowena Craze as group chief risk officer.
Other appointments include Patrick McGlinchey as group chief legal officer, Sarah Derry as chief people officer, effective July 1, and Peter Meliniotis as group chief information officer. As part of its decentralisation plan, Star has also named Helen Galloway as incoming independent chair of The Star Sydney.
Last month, Star Entertainment Group reported net revenue of AU$271m (US$173.8.) for the third quarter of the financial year 2025. Revenue was down 9 per cent sequentially and 35.35 per cent in year-on-year terms. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were negative AU$21m (US$13.4m) compared to negative AU$8m (US$5.1m) in the previous quarter.
