Latest news with #rescuePackage
CNA
30-06-2025
- Business
- CNA
Star Entertainment's Hong Kong backers threaten to soon exit Brisbane casino deal
(Corrects timing of shareholder approval to this month) By Shivangi Lahiri and Rishav Chatterjee Australia's Star Entertainment said on Monday that its Hong Kong-based investors had threatened to imminently withdraw from a deal for Brisbane's new Queen's Wharf casino and hotel complex, sending its shares 7 per cent lower. Chow Tai Fook Enterprises and Far East Consortium each hold a 25 per cent stake in the Brisbane development and agreed in March to acquire the remaining 50 per cent. The deal is set to be cancelled in five business days, according to a notice to terminate from the Hong Kong firms. The notice comes after Star's shareholders this month approved an A$300 million rescue package that will allow the embattled casino group to remain operational. The rescue bid is being led by U.S. casino firm Bally's Corp and the Mathieson family, which is Star's largest existing shareholder. Star said it had been negotiating with the Hong Kong firms since its June 25 annual general meeting but had not reached an agreement on "outstanding commercial issues." It remains willing to talk with them, it added. Chow Tai Fook and Far East each own 2.8 per cent of Star and also own a combined two-thirds of Star's Gold Coast property. Star's main casino is in Sydney. In recent years, Star and Blackstone-owned larger rival Crown Resorts have been the subject of multiple regulatory inquiries into violations of anti-money laundering rules that have sapped their allure for high roller visitors. They were also hit hard after the pandemic brought lengthy closures and froze tourism. Far East said in a separate statement on Monday that Star must repay A$10 million ($6.5 million) or forfeit its remaining third stake in the Gold Coast casino within 30 days of the Brisbane deal being terminated. The potential termination of the Queen's Wharf deal marks a major setback for Star which has with the Hong Kong firms poured in significantly more capital than expected to complete the project. The project now carries some A$1.6 billion in debt. Star's stock snapped four straight days of gains and ended 6.9 per cent lower at A$0.135.
Yahoo
25-06-2025
- Business
- Yahoo
Australia's Star casino shareholders approve $195 million rescue package
By Scott Murdoch SYDNEY (Reuters) -Star Entertainment Group's shareholders approved on Wednesday an A$300 million ($195 million) rescue package that will allow the embattled Australian casino group to remain operational, according to a company presentation. The rescue bid is being led by U.S. casino firm Bally's Corp and the Mathieson family, which is Star's largest existing shareholder. The proposal put to shareholders at a Sydney meeting was approved by more than 98% of investors' proxy votes, according to company slides shown at the event that was live-streamed. A final result of the vote will be announced later on Wednesday. Australia's second-largest casino operator after Blackstone-controlled Crown Resorts, Star has been struggling to stay afloat amid a growing debt crisis and regulatory investigations over the past two years. The rescue deal consists of multi-tranche convertible notes and subordinated debt instruments, and after the notes are converted, Bally's and the Mathieson family will control around 56% of Star's issued capital. Star chairman Anne Ward said the company had no other option than to support the Bally's-led bid after interest from Oaktree and Salters Brothers collapsed earlier this year. "The strategic investments ... provide cash funding and assist Star's ability to continue as a going concern, helping to avoid outcomes such as voluntary administration, which is likely not in the best interests of shareholders," Ward told the meeting. Star said in March it would sell half of its A$3.6 billion Queen's Wharf project in Brisbane to Hong Kong companies Far East Consortium International and Chow Tai Fook Enterprises for just A$53 million. It has also sold a theatre attached to its main casino in inner-city Sydney as part of its efforts to stay afloat. Bally's owns 19 casinos across 11 U.S. states, according to its website, and the Star investment is its first in Australia. ($1 = 1.5394 Australian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
25-06-2025
- Business
- Reuters
Australia's Star casino shareholders approve $195 million rescue package
SYDNEY, June 25 (Reuters) - Star Entertainment Group's ( opens new tab shareholders approved on Wednesday an A$300 million ($195 million) rescue package that will allow the embattled Australian casino group to remain operational, according to a company presentation. The rescue bid is being led by U.S. casino firm Bally's Corp (BALY.N), opens new tab and the Mathieson family, which is Star's largest existing shareholder. The proposal put to shareholders at a Sydney meeting was approved by more than 98% of investors' proxy votes, according to company slides shown at the event that was live-streamed. A final result of the vote will be announced later on Wednesday. Australia's second-largest casino operator after Blackstone (BX.N), opens new tab-controlled Crown Resorts, Star has been struggling to stay afloat amid a growing debt crisis and regulatory investigations over the past two years. The rescue deal consists of multi-tranche convertible notes and subordinated debt instruments, and after the notes are converted, Bally's and the Mathieson family will control around 56% of Star's issued capital. Star chairman Anne Ward said the company had no other option than to support the Bally's-led bid after interest from Oaktree and Salters Brothers collapsed earlier this year. "The strategic investments ... provide cash funding and assist Star's ability to continue as a going concern, helping to avoid outcomes such as voluntary administration, which is likely not in the best interests of shareholders," Ward told the meeting. Star said in March it would sell half of its A$3.6 billion Queen's Wharf project in Brisbane to Hong Kong companies Far East Consortium International ( opens new tab and Chow Tai Fook Enterprises for just A$53 million. It has also sold a theatre attached to its main casino in inner-city Sydney as part of its efforts to stay afloat. Bally's owns 19 casinos across 11 U.S. states, according to its website, and the Star investment is its first in Australia. ($1 = 1.5394 Australian dollars)
Yahoo
25-06-2025
- Business
- Yahoo
Australia's Star casino shareholders approve $195 million rescue package
By Scott Murdoch SYDNEY (Reuters) -Star Entertainment Group's shareholders approved on Wednesday an A$300 million ($195 million) rescue package that will allow the embattled Australian casino group to remain operational, according to a company presentation. The rescue bid is being led by U.S. casino firm Bally's Corp and the Mathieson family, which is Star's largest existing shareholder. The proposal put to shareholders at a Sydney meeting was approved by more than 98% of investors' proxy votes, according to company slides shown at the event that was live-streamed. A final result of the vote will be announced later on Wednesday. Australia's second-largest casino operator after Blackstone-controlled Crown Resorts, Star has been struggling to stay afloat amid a growing debt crisis and regulatory investigations over the past two years. The rescue deal consists of multi-tranche convertible notes and subordinated debt instruments, and after the notes are converted, Bally's and the Mathieson family will control around 56% of Star's issued capital. Star chairman Anne Ward said the company had no other option than to support the Bally's-led bid after interest from Oaktree and Salters Brothers collapsed earlier this year. "The strategic investments ... provide cash funding and assist Star's ability to continue as a going concern, helping to avoid outcomes such as voluntary administration, which is likely not in the best interests of shareholders," Ward told the meeting. Star said in March it would sell half of its A$3.6 billion Queen's Wharf project in Brisbane to Hong Kong companies Far East Consortium International and Chow Tai Fook Enterprises for just A$53 million. It has also sold a theatre attached to its main casino in inner-city Sydney as part of its efforts to stay afloat. Bally's owns 19 casinos across 11 U.S. states, according to its website, and the Star investment is its first in Australia. ($1 = 1.5394 Australian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
10-06-2025
- Business
- Telegraph
Thames Water lenders demand reprieve on fines in £17bn rescue deal
Thames Water's most senior lenders have demanded a reprieve on historical fines as part of its £17bn rescue package to save the struggling utility giant. A group of creditors including aggressive US fund Elliot are asking Ofwat for a 'regulatory reset' to avoid hundreds of millions of pounds in fines and penalties as part of proposals to secure the company's future. A source close to the group said they were urging regulators 'not to reach back into history' and instead focus on Thames Water's turnaround efforts moving forward. The attempt to avoid penalties comes after Thames was hit with a record £122.7m fine last month for sewage leaks and breaching dividend rules. Fitch currently estimates that the water sector will face £900m in fines over the next five years. Private equity giant KKR last week abandoned its £4bn takeover bid for Thames, in part because of concerns about future fines. The decision has plunged the debt-laden business into a fresh crisis, amid concern it could run out of cash within months. Creditors have now put forward plans to immediately inject £5bn worth of funding into Thames to help repair its balance sheet, including £3bn of direct investment and £2bn of debt expected to be raised by the group. If the new proposals go ahead, several billion pounds of debt will also be written off by creditors, valuing the total package of support at £17bn. The group claims the debt write-offs will deliver the largest financial loss ever suffered on an infrastructure investment in the UK. However, creditors are targeting a future stock market listing that will ensure a profitable exit. Plans put forward envision a 15-year turnaround effort that will include direct investment in wastewater, sewer capacity, storm overflows, metering and leak detection. A spokesman for the creditors said: 'These investors have the funding and experience required to deliver a transformation of the company's performance which is intended to mark a departure from past failings, creating a 'new' Thames Water that works effectively alongside Government, regulators, and customers to deliver for the environment and economic growth.' Sources close to the creditors said they were hoping to have their package approved by early autumn, with the hope of taking full control of Thames by the end of the year. The proposed rescue will also tee up a potential clear-out of Thames Water's management, as the creditors seek to enlist the relevant experts to improve its fortunes. The future position of Chris Weston, chief executive, is uncertain. An Ofwat spokesman said the regulator had 'been engaging regularly with Thames Water as it has progressed its process to raise additional equity'. The watchdog added it had begun a review of the submission from the creditors and was focused on assessing if the plans were realistic and deliverable. A Thames Water spokesman said: 'Our focus remains on a holistic and fundamental recapitalisation, delivering a market-led solution which includes targeting investment grade credit ratings and returning the company to a stable financial foundation. 'The Board will consider in the weeks ahead the full recapitalisation and turnaround plan submitted by our creditors. Constructive discussions with our many stakeholders continue.' A government spokesman said: 'The company is stable, and government is carefully monitoring the situation. We expect the company to continue to meet its obligations to both customers and the environment.' Thames Water has been embroiled in a row over bonuses paid to its most senior staff members despite its perilous finances. Last week, the Government announced new measures to ban six firms, including Thames Water, from handing bonus payments to their top executives after falling short of standards set by Ofwat. The company confirmed to the Environment, Food and Rural Affairs (EFRA) Committee that 21 members of its senior management team had received 'retention payments' of 50pc of their base salary. In a letter to the EFRA committee Sir Adrian Montague, the chairman of Thames, said the company had promised bonuses totalling £18.5m, to be paid between 30 April 2025 and June 2026. Thames said the additional payments had been paused but said it would not recoup the money already been paid out. Alistair Carmichael, the chair of the EFRA committee, said: 'As a committee, we are trying to seek clarity as to whether these payments fall within the remit of the Government's ban and will be recouped, given that they were not paid to the company's CEO or CFO and are termed by Thames Water as 'retention payments' rather than bonuses.' Thames Water said retention payments were 'commonplace in these types of deals', adding: 'None of the retention payments have been funded by customers.'
