Star is looking for a financial lifeline to stave off collapse after it was mired in a scandal involving criminal infiltration and money laundering in its Queensland and New South Wales casinos. Shares in struggling casino giant Star Entertainment have plummeted after a brief trading halt was lifted, as the company searches for a financial lifeline by the end of the day. Struggling casino operator The Star Entertainment Group has warned it is facing a "critical" liquidity challenge as it tries to stem major revenue losses flowing from the introduction of mandatory carded play and Blackcoin cash limits. Star did not name the parties that are expected to provide an offer of financing, but it has confirmed previously that US finance giant Oaktree has tried to buy out Star’s debt from its lenders. More than 8000 jobs hang in the balance as teetering casino operator Star Entertainment is on the brink of financial collapse, with its board in last-ditch talks late on Friday to find the cash needed to keep the company afloat. While assets like hotels and carparks could be sold to raise cash, voluntary administration and a shareholder wipeout remain a "high likelihood", said Morgans Financial analyst Leo Partridge.
"If they do sell it at a premium, which would be highly likely given its prime position, then that could bode really well for the company." Looking ahead, McCann believes today’s transactions position The Star for future success, though many challenges remain. In addition to The Star Brisbane sale and bridge financing, The Star announced that a further debt refinancing proposal of A$750 million had been received from an additional potential lender. Whether that offer will be accepted is ongoing, with Star officials saying "outstanding due diligence inquiries" will be completed by March 18. The only positive element to Wang stalking Star is that he is prepared to place money on a bet that Star will survive. It was enough to breathe some life back into the share price, which has moved up from 10¢ to 14¢ since Wang’s shareholding was disclosed. In a possible blow to these asset sale hopes, it has been reported that an Australian company that was lined up to buy the leasehold of the Treasury Hotel in Brisbane has pulled out in recent times.