Star Entertainment Group was again suspended from trading on the ASX on March 3 after failing to lodge its half year financial returns.
The Star Group, which operates casinos in Sydney, Brisbane and the Gold Coast, 聽that its half year financial report to December 31 was not lodged on February 28, as required by ASX rules. Its shares were automatically suspended from trading.
Further, it said it would be 鈥渦nlikely鈥 to lodge these reports 鈥渦nless, and until, it has secured a refinancing commitment鈥, including for its existing corporate debt.
The Star also noted: 鈥淭here remains material uncertainty as to the Group鈥檚 ability to continue as a going concern.鈥
The Sydney Morning Herald reported on March 3 that a financing deal, which had been expected on February 28, did not happen, and unless one is found, the operation is expected to run out of cash this week.
Shares took a 15% hit and closed at 11垄.聽Once worth $5 billion, Star is now valued at $315 million, with collective debts of $430 million.
顿别蝉辫颈迟别听unprecedented latitude from regulators, Star has been unable and, it would seem, unwilling to successfully rebuild its shattered reputation after聽multiple scandals involving criminal infiltration and money laundering聽in its Queensland and New South Wales casinos.
Facing administration and the sale of its $800 million in assets, Star Group seems unlikely to stave off final collapse and the loss of thousands of jobs.聽聽
Star Group employs almost 9000 people: 3000 in Brisbane, 2000 on the Gold Coast and 3500 in Sydney. It also has about 400 corporate employees.
United Workers Union spokesperson Andrew Jones told 聽that staff are frustrated at Star鈥檚 鈥渂usiness as usual鈥 attitude, saying staff deserve certainty. 鈥淭hey want to know their job is going to be there tomorrow.鈥澛
鈥淚t鈥檚 not fair that hard-working Star employees could be left carrying the can for a series of regulatory and operational failures they have had nothing to do with,鈥 .
鈥淚f Star鈥檚 current management fails to come to terms, workers need to be given assurances in any administration or sale scenario that their jobs will be maintained.
鈥淭he casino鈥檚 recovery must prioritise the workforce, as casino workers are integral to the success of the operations.鈥
But with Star鈥檚 collapse seemingly imminent and the future of its Brisbane Queens Wharf project also in doubt, it looks like thousands of people will lose their jobs.
When Star does implode, employees will be hoping regulators and administrators prioritise staff entitlements and re-employment over that of the board and executive.
[Suzanne James is a policy, governance, risk management and compliance consultant.]