Board meetings are widespread leaned to trigger some sort of balance sheet relieffollowing last week Potential earnings downgrades and asset write-downsAnalysts believe the casino owner may have violated the bank’s terms and conditions given what happened to the earnings.
Star’s problems include restrictions on operations at Sydney’s flagship casino and increased competition in Sydney. We are also in discussions with the NSW Government on proposed changes to the casino tax rate that will further hurt revenues under the current proposed form.
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As an interim measure, Star has announced an “immediate review” of its flagship Sydney casino’s operating model and assets. It is also understood that he had sought an urgent meeting with the NSW Government to resolve tax matters.
A spokeswoman for Star declined to comment on Tuesday’s talks with Oaktree or other funding options. Sources say the board has yet to agree on anything, but was keen to consider all options.
It’s no surprise that Oaktree brings up the proposal to Star.The group previously stalked James Packer’s stake Rival Australian casino operator Crown Resortsbefore Crown was sold to US private equity group Blackstone.
Star Robbie Cook has been baptized with fire. He will report the first results on Thursday. Louis Davis
Oaktree has also expanded into the overseas gaming sector, having acquired poker machine developer Interblock last year and previously owned Gaming Group J.&J Ventures and Cannery Casino Resort.
Any movement must be carefully configured to comply with regulations. For example, no shareholder may own more than 10% of her shares without the written consent of the Independent Liquor and Gaming Authority of New South Wales and the Queensland Minister.