Teetering casino giant Star Entertainment is considering a $650 million financial lifeline from a hard-nosed lender whose bailout deal with another big-name Queensland company ended in tears for shareholders.
ASX-listed Star runs casinos in Brisbane, the Gold Coast and Sydney, and has warned of the risk of collapse due to financial struggles.
It confirmed to the sharemarket on Monday that it received an offer to lend $650 million from California-based Oaktree Capital Management, which deals in what is known as distressed debt.
The deal is not yet sealed — it could also require Star’s existing lenders to agree with Oaktree to a refinance deal that could see those older lenders take less money than is owed.
The logic for those older lenders…
