Star Entertainment’s Queen’s Wharf deal in doubt
The operator says the sale is unlikely to close by deadline.
Australia.- Casino operator Star Entertainment has warned that its deal to sell a 50 per cent stake in the Queen’s Wharf project in Brisbane is unlikely to close by the July 31 deadline. The company said negotiations with Hong Kong-based partners Chow Tai Fook Enterprises and Far East Consortium are unlikely to finish in time.
That puts Star at risk of repaying more than AUD 36m (US$23m) by September: AUD10m (US$6m) for proceeds already received from the Hong Kong investors and a AUD26.5m (US$17m) in equity contributions paid since details of the deal were announced four months ago.
Originally announced in March, the deal was to provide a financial lifeline to Star, offering AUD 53m upfront and monthly operational fees. Star reported an AUD 27m (US$17.5m) loss for the quarter ending June 30.
