Star Entertainment shares have plunged after the company was placed in a trading halt this morning for failing to submit its half-yearly results on time and admitting there are serious doubts about its ability to continue operations.
The casino operator missed the 10 a.m. (AEDT) Friday deadline for its half-yearly report, prompting the ASX to temporarily suspend trading in Star shares.
In a statement to the sharemarket, Star Entertainment mentioned that it expected to receive at least one liquidity proposal today, but noted that the half-yearly report could only be finalized once these proposals were assessed. The company highlighted “material uncertainty” regarding its ability to remain a going concern.
When trading resumed, Star’s share price dropped by 15% as investors rushed to sell their stocks. This followed reports that the company was struggling to meet short-term payments, including payroll, and was at risk of running out of cash.
Star, which operates casinos in Sydney, Brisbane, and the Gold Coast, had warned in January that it had only $79 million in the bank at the end of 2024, after burning through $107 million in just three months.
Despite seeking financing options to ensure its survival, Star has so far been unsuccessful. While the NSW government stepped in with assistance in 2023, Premier Chris Minns has ruled out further help this year, and Queensland’s Premier David Crisafulli has distanced himself from the possibility of government intervention.
