Star Entertainment Group is close to selling its stake to stave off collapse

The embattled casino operator has desperately sought more cash as it was forced into a trading halt earlier this week after failing to publish its half-year financial results by the Friday deadline.

Media reports arose on Thursday that Star is close to securing a deal where it will sell off its stake in the Brisbane property to Far East Consortium and Chow Tai Fook – which each own 25 per cent stakes in the precinct.

This comes about a month after the casino operator confirmed it had knocked back several offers from the Hong Kong investors as they could not come to an agreement on key details.

The new deal could prevent Star from going into administration by this weekend, according to The Australian.

Star’s chief executive Steve McCann is also looking at securing the $60m from the sale of its events centre at its Sydney premises, which remains in escrow.

The casino operator in January revealed the sale of the complex – which it had previously described as a $100m venue – to Foundation Theatres.

Its attempts to secure more cash comes at it owes about $430m to an array of lenders.

Sky News' Business Reporter Ed Boyd said Star was paying an interest rate to bank of "around 16 per cent"

He also noted the company's future in administration could cost around $300m but stressed there is an option for the company to secure more cash.

"Pub baron Bruce Mathieson's company, they've place a $550m bid just for the Gold Coast Jupiter's Casino - that's been knocked back but that bid is still on the table," Boyd said.

Star had just $78m left as of December 31 after churning through $107m over the previous three months.

It recently said it was considering a $650m financial lifeline from American asset management firm Oaktree Capital Management which could help it stay afloat.

However, this deal could be in doubt, according to Sky News’ Ross Greenwood, as Oaktree wants the "rights over the property" where the Star Casino in Sydney sits, which is owned by the NSW Government.

“My understanding of it is that there is no way known that the New South Wales Government will give that up easily," Greenwood said.

“In fact, the NSW Government, in my understanding, would allow the Star to go into insolvency and then deal with the administrators.”

Prior to Greenwood’s revelation, Star briefly put itself into a trading halt only to resume trading a short time later without alerting shareholders

Star Entertainment Group is close to selling its stake in the Queen’s Wharf precinct to Hong Kong-based investors in a deal that could secure $50 million for the company as it attempts to stave off collapse.

The embattled casino operator has desperately sought more cash as it was forced into a trading halt earlier this week after failing to publish its half-year financial results by the Friday deadline.

Media reports arose on Thursday that Star is close to securing a deal where it will sell off its stake in the Brisbane property to Far East Consortium and Chow Tai Fook – which each own 25 per cent stakes in the precinct.

This comes about a month after the casino operator confirmed it had knocked back several offers from the Hong Kong investors as they could not come to an agreement on key details.

The new deal could prevent Star from going into administration by this weekend, according to The Australian.

Star’s chief executive Steve McCann is also looking at securing the $60m from the sale of its events centre at its Sydney premises, which remains in escrow.

The casino operator in January revealed the sale of the complex – which it had previously described as a $100m venue – to Foundation Theatres.

Its attempts to secure more cash comes at it owes about $430m to an array of lenders.

Sky News' Business Reporter Ed Boyd said Star was paying an interest rate to bank of "around 16 per cent".

He also noted the company's future in administration could cost around $300m but stressed there is an option for the company to secure more cash.

"Pub baron Bruce Mathieson's company, they've place a $550m bid just for the Gold Coast Jupiter's Casino - that's been knocked back but that bid is still on the table," Boyd said.

Star owns a 50 per cent stake in the Queen's Wharf precinct. Picture: Steve Pohlner

Star had just $78m left as of December 31 after churning through $107m over the previous three months.

It recently said it was considering a $650m financial lifeline from American asset management firm Oaktree Capital Management which could help it stay afloat.

However, this deal could be in doubt, according to Sky News’ Ross Greenwood, as Oaktree wants the "rights over the property" where the Star Casino in Sydney sits, which is owned by the NSW Government.

“My understanding of it is that there is no way known that the New South Wales Government will give that up easily," Greenwood said.

“In fact, the NSW Government, in my understanding, would allow the Star to go into insolvency and then deal with the administrators.”

Prior to Greenwood’s revelation, Star briefly put itself into a trading halt only to resume trading a short time later without alerting shareholders.

Star also noted it could post its results if it received an appropriate liquidity proposal, with the group anticipating “one or more” on Friday.

However, the company has been unable to secure a new finance deal.

The Australian Securities Exchange on Monday alerted shareholders that Star, alongside seven other publicly listed companies, was suspended from trading for failing to publish their results.

Star confirmed it was "unlikely" to lodge its financial results unless it had secured a lifeline that would "refinance all of the group's existing corporate debt" and provide "additional liquidity".