(Reuters) – Australia’s Star Entertainment on Friday said it has yet to reach an agreement to sell its 50% stake in the Brisbane joint venture to its Hong Kong-based shareholders, as it navigates mounting pressures to avoid voluntary administration.
The Australian Financial Review reported that Star is considering offloading its newly-opened Brisbane casino and entertainment complex as part of a potential deal with Chow Tai Fook Enterprises and Far East Consortium.
The move would come at a time when the embattled company is seeking critical funding to stabilize its finances.
Earlier this week, Star announced it would delay the release of its interim financial results until a rescue financing package is secured, with its shares remaining suspended from trading.
Star currently has debts of A$400 million ($253.4 million), while the Queen’s Wharf project — its flagship Brisbane development — has additional debts of A$1.6 billion.
The ambitious project, initially launched in 2015 as a partnership between Star, Chow Tai Fook, and Far East, was originally projected to cost A$2.6 billion.
The company’s financial woes and the potential sale of its Brisbane assets underscore the mounting pressures on Australia’s casino sector, which has faced heightened regulatory scrutiny and economic headwinds in recent years.
($1 = 1.5783 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Varun H K)
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