Fri Feb 28 07:50:00 UTC 2025: ## Star Entertainment Shares Plummet as Casino Giant Faces Collapse

**Sydney, Australia –** Shares in Star Entertainment, the operator of casinos in Brisbane, the Gold Coast, and Sydney, plummeted by over 15% on Friday, closing at just 11 cents, after a trading halt amid a desperate search for a financial lifeline. The company, which employs approximately 9,000 people, narrowly avoided immediate suspension from the Australian Securities Exchange (ASX) after failing to release its half-year financial results on time.

Star Entertainment had previously warned of its precarious financial position and a potential collapse. The company’s available cash balance stood at a mere $79 million in January. A potential $650 million debt refinancing offer from Oaktree Capital Management is under consideration, but a resolution remains uncertain.

Analyst Omkar Joshi of Opal Capital Management attributed Star’s woes to a series of poor management decisions over several years, culminating in an inability to raise equity or debt funding. He predicted that without a significant financial injection, the company would likely enter voluntary administration, leading to the potential sale of its assets.

The looming prospect of administration has caused significant anxiety among Star’s employees. Andrew Jones of the United Workers Union expressed concerns about job losses, urging state governments to intervene swiftly to protect workers should administration occur. Both Queensland Premier David Crisafulli and NSW Minister Penny Sharpe stated their governments are prioritizing employee protection.

Adding to the pressure, the Australian Securities and Investments Commission (ASIC) is suing 11 former directors and executives for alleged breaches of their duties related to money laundering and criminal associations between 2017 and 2019. Two former executives have already reached settlements with ASIC.

Billionaire Bruce Mathieson, a significant shareholder, expressed concerns about the company’s future and suggested a change in management could offer a solution. Analysts have previously estimated a 50% chance of Star’s collapse. The company’s dire financial situation and the uncertainty surrounding its future are causing widespread concern across the industry and among its workforce.

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