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The Star Group has been suspended from trading on the Australian Stock Exchange after failing to publish financial results for the 12 months to June 30 as its executives continue to lobby the government, banks and investors in a last-ditch effort to remain solvent.
The Star, which operates three casinos in Sydney, Brisbane and the Gold Coast, expects to record a $1 billion impairment in the coming days after months of poor trading and ballooning regulatory costs.
New owner Steve McCann has been in talks with the Queensland and NSW governments since last week in an attempt to secure tax breaks to buy the struggling business some time to shore up its finances. He has also been lobbying major investors and banks In the hope of getting new cash injection.
The Star, which may have received tax breaks in Queensland, opened its new branch at Brisbane’s Queens Wharf last Thursday.Credit: Star Entertainment
Queensland Premier Steven Miles confirmed on Monday that the Queensland government was considering the Star’s request. A New South Wales government spokesman said the business must maintain its financial viability on its own.
Mr Miles said he was in “ongoing discussions” with The Star about tax arrangements for its Brisbane and Gold Coast casinos. Last week, The Star opened its much-anticipated $3.6 billion casino districtQueen’s Wharf, Brisbane, is expected to employ up to 3000 people.
Queensland Premier Steven Miles.Credit: Jamila Todras
“It’s too early to say what arrangement we will have with Star but we will certainly ensure they deliver on the contribution to Queensland that they promised when they signed the contract,” Mr Miles said.
“This includes the construction of Queen’s Wharf in Brisbane, the development of the surrounding public realm, including the (Neville Bonner) bridge, creating 1400 (new) jobs and generating revenue for the state government.”
Queen’s Quay is a joint venture between Chow Tai Fook Enterprises and Far East Consortium. Investment sources who were not authorised to speak publicly said The Star had been considering writing off its entire stake in the multibillion-dollar venue.
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