The Star Entertainment extends DBC deal deadline with revised repayment terms
Revised HoA to remain in effect until end of July as negotiations continue.
Key points:
– Termination deadline extended to 31 July to finalise long-form agreements
– The Star may be liable to repay over AU$36m (US$24m) if deal collapses
– Agreement covers stakes in both the Brisbane and Gold Coast Consortium
The Star Entertainment has secured a further extension in its negotiations with joint venture partners regarding its planned exit from the Destination Brisbane Consortium (DBC) and Destination Gold Coast Consortium (DGCC).
The company confirmed it has reached agreement with Chow Tai Fook Enterprises and Far East Consortium on revised terms to progress talks under the previously announced Heads of Agreement (HoA). The original notice to terminate the deal, issued by the partners on 30 June, has now been delayed until 31 July to allow more time to complete the necessary long-form documentation.
While the HoA remains in effect during this extended window, The Star Entertainment is now subject to new financial obligations if negotiations fail. Should the long-form agreements not be signed by 31 July, The Star will be required to repay AU$10m to its partners—funds previously received under the deal. In addition, it must reimburse a further AU$26.5m representing its share of equity contributions made to DBC since 31 March. These repayments are due within 30 and 60 days respectively.
Good to know: The HoA covers The Star’s stakes in two major Queensland resort projects and associated assets
The Star’s initial announcement in March outlined its intent to exit its equity positions in DBC and DGCC in order to consolidate operations and focus more heavily on its Gold Coast assets. However, progress has stalled amid unresolved commercial issues, prompting concerns over the deal’s viability.
The company noted it would continue to update the market on any significant changes or further developments in its negotiations.
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