The fought casino operator star is considering a deal to helm US casino players with an 11-hour offer that could turn the group’s fate.
Bally’s Corporation, which owns and operates 19 casinos in 11 US states, is proposing a final $250 million recapitalization plan in exchange for a 50.1% minimum stake in casino operators.
Star’s board of directors notified shareholders of the offer in an ASX announcement Monday morning and was considering a deal.
“But there’s no certainty that it will progress,” Starboard wrote.
Star stock has been suspended for more than a week after it failed to register it in its financial report due to its debt spiralling over $400 million in debt.
The star’s downturn, prompted by inquiries that discovered Star’s revenue, licensing issues, and systematic violations of the Anti-Money Laundering Act, sucked up finances at the edge of the Abyss.
The money laundering survey alone would cost $150 million in 2023.
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The future of the group, and the future of more than 8,000 staff, depends on the ability to get the book back on track.
The star on Friday secured a $53 million lifeline in exchange for his interest in the Queens Wharf Brisbane Entertainment District.
On the same day, Star announced that he had entered documents for a senior protected $250 million bridge facility and an additional $750 million refinance agreement with SO FAR’s unnamed party.
With a track record of turning a struggling casino around, Bally’s will take on $250 million in capital.
“Bally’s will partner with Star in developing important operating experiences in turning casino assets and growing highly successful casino businesses around the world,” wrote Bally Chair Soo Kim.
“We are ready to move quickly and enter into a binding contract with STAR to implement capital injections.”
The unbinding offer of unsolicited consent was not the last, he added.
“To be clear, we will remain very open to discussing bigger transactions in response to discussions about star liquidity and capital needs,” he said.
“We are also happy to explore alternative structures that maintain the value of all key components, including regulators, creditors, equity holders, employees and more.”
