Star Entertainment, an Australian casino operator, is selling $37.5 million in assets to repay part of its obligations.
Star announced the sale on the Australian Securities Exchange (ASX) months after David Roster resigned as chairman.
To alleviate its present cash crisis, Star Entertainment plans to sell the Sydney Event Centre and its assets to Foundation Theatres.
This story came shortly after Star announced that it would only have AU $79 million in cash at the end of December 2024 and had been looking for further capital since September.
Steve McCann, CEO of the Star Theater Company, stated: “The Star has worked closely with the team at Foundation Theatres since they acquired the sublease for the Sydney Lyric in 2011. “We are happy to partner with them as part of the continuous expansion of our diverse entertainment offerings at The Star Sydney. We are also working on other potential non-core asset transfers.”
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Some have attacked the Star for selling the multi-floor complex for less than its true worth.
According to an unnamed source interviewed by the Australian Financial Review, a single theater in Sydney is worth more than twice as much as a casino. Despite the need for more theaters, it is not recommended to build them within a casino.
Rumors have circulated that Cerberus Capital Management is in talks with some of Star’s lenders about restructuring the gaming company’s debt. The suspected creditors are Barclays, Deutsche Bank, Soul Patts, and Westpac.
According to reports, efforts are underway to take off some of Star’s AU $400 million overall debt. Cerberus has not confirmed this officially.
Cerberus, based in New York, oversees assets worth $65 billion. It is a renowned alternative investment firm that focuses on credit, private equity, and real estate investments.
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