Lenders of The Star Entertainment Group have offered the casino operator an additional AU$150m ($100m) to tide over the cash crisis caused by cost overruns at its new Brisbane casino, and a decrease in patronage.
According to Australian news media, its lenders and potential financiers included Oaktree Capital and Cerberus Capital Management. Negotiations between The Star's board and said lenders are still ongoing.
The proposed AU$150m injection would increase an existing AU$350m senior debt facility, contingent on securing additional assets.
Among the lenders, Macquarie and Deutsche Bank have requested greater security over The Star's properties. However, any agreement would be subject to regulatory approvals.
Star Entertainment would also be working with the Queensland and New South Wales Governments and the financial crimes regulator to stabilise its finances.
The group hopes to finalise a deal by the end of this week.
Star Entertainment, which has operations and properties in Sydney, Brisbane and the Gold Coast, announced a trading halt shortly after the opening of Star Brisbane.
The group was later reported to be seeking tax relief amidst facing financial struggles and regulatory scrutiny.
Just last week, the group announced that it would be reaching a deal with Griffith University for the sale of its Treasury Building in Brisbane. The sum generated from said sales deal, however, might not amount up to the AU$300m in short-term funding sought by the group.
