Star Entertainment shares suspended from Monday trading

Shares in Star Entertainment have been suspended from trading on the public markets again on Monday, spelling more trouble for the embattled gaming giant and its 9000 employees.

The Australian Securities Exchange notified the market of the suspension on Monday morning, stating shares in the company would be placed into a trading halt after the company failed to lodge its half-yearly accounts on Friday.

Star’s shares have now been on hold since Friday.

On that day, the board admitted there was “material uncertainty” about the company’s ability to continue as a “going concern”, meaning a collapse was potentially imminent.

“The company is continuing to explore possible liquidity solutions that might materially increase the Group’s liquidity position and anticipates that it will receive one or more liquidity proposals during the course of today,” the company said on that day.

The company’s management then scrambled to secure emergency financing for the crumbling $315m company over the weekend.

But Monday’s suspension from quotation means it is unlikely the company can sign off on its accounts and has been unable to reach any funding agreement.

The company is now slipping quickly towards administration, which will put the jobs of its 9000 employees in limbo.

Star operates casinos and hotels in Sydney, Brisbane and the Gold Coast.

The company is expected to inform the market of its position in more detail later on Monday.

The troubled gaming giant is running out of cash and confronting a severe downturn in revenues as an exodus of high rollers and cost-of-living pressures hit the business.

It is also battling a tangled swirl of corporate watchdog investigations and penalties for serious failures at its operations.

In October 2022, the NSW Independent Casino Commission imposed a $100m fine on Star after finding the company had allowed money laundering to take place at its Sydney casino.

A report into the business also found the company had exploited vulnerable gamblers.

The company’s collapse has been slow but steady.

In July last year, the company held a market capitalisation of $1.5bn

More to come