Star Entertainment, Australia's major casino operator, is teetering on the brink of collapse. The company is burning through cash at an alarming rate, with only a few months' worth remaining. While a new debt facility offers a lifeline, it comes with stringent conditions, including high interest rates, security demands, and a requirement to sell assets. This precarious financial situation raises serious doubts about Star's ability to survive.
There is an adage that the sharemarket is like a casino. Taking a punt on whether our own major casino operator, Star Entertainment , will survive is therefore akin to betting on a betting shop. It should come with a warning: suitable only for the adrenaline-charged or risk-addicted – the kind of people who in their spare time enjoy driving racing cars or bungee jumping.
A stock exchange announcement on Wednesday evening conveyed that the company was burning through cash at a rate of $35 million per month and now has only $79 million left in the cash kitty - an amount that gives it only a couple of months left before it runs out. This is after it received $100 million inDominic Lorrimer
Star is a big employer and tourist drawcard in both states - with its flagship Sydney casino and large casinos in Brisbane and the Gold Coast. But the governments recognise that bailing out casinos is a politically dangerous move. They no longer seem to have a dog in this fight.
Star Entertainment Casino Financial Crisis Debt Bankruptcy
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