The Star Fails to Negotiate Covenant Waivers with Lenders

The Star Entertainment Group’s financial troubles continued, as the company found itself unable to secure lender waivers that would have allowed it to breach the terms of its debt agreements without risking penalties.

The Terms Are Unacceptable to The Star

In an official Australian Securities Exchange (ASX) release, the company responded to a recent publication by the Australian Financial Review. In its article, the news outlet had claimed that The Star’s lenders, which include Deutsche Bank, Macquarie, and Washington H. Soul Pattinson, refused to grant waivers that would have allowed the casino group to breach the terms of a $430 million loan. The Australian Financial Review had pointed out that this would prevent The Star from finalizing its full-year accounts.

In its official response, the Australian casino and hospitality company noted that one of its previous financial reports had confirmed that The Star continued to rely on its lenders’ support under the Senior Facility Agreement, and was discussing “likely covenant waivers.”

The company confirmed that it has been in talks about potential covenant waivers for September 30 and December 31. However, The Star also pointed out that the SFA lender group “has proposed various terms in exchange for providing the requested covenant waivers which, in aggregate, are unacceptable to The Star.”

As a result, The Star noted:

The Company currently anticipates that on Friday 29 August 2025, it will lodge with the ASX unaudited accounts for the period ended 30 June 2025. The Company is targeting finalisation of its audited accounts during September 2025 and lodgement with the ASX by 30 September 2025.

The Star Entertainment Group statement

The Star Remains Embattled

The Star Entertainment Group’s regulatory trouble has unleashed a chain of unfortunate events for the company that has led to significant loss of finance and investor trust. The company’s market capitalization has continued to plummet, with its shares now trading at only AUD 0.10 apiece.

To make matters worse, the company recently announced that the planned sale of its interest in the Destination Brisbane Consortium (DBC) had fallen through, causing further hits on its waning stock. The company later succeeded in reaching an agreement to offload its 50% stake in Brisbane’s Queen’s Wharf casino to its Hong Kong-based partners, Chow Tai Fook Enterprises and Far East Consortium, for AUD 53 million.

In the meantime, The Star continues to rely on Bally’s help, hoping for the tide to turn.