Star Entertainment Group Ltd (ASX: SGR) shares have yet to appear on the ASX boards in September.
The casino and resorts operator's shares have been suspended from trade since 28 August as it reviews its financial and liquidity position with various advisers and finalises its preliminary financial report for the financial year ended 30 June 2024.
Since then, the company has announced an agreement to sell the leasehold interest in the Treasury Brisbane Casino building to Griffith University for $67.5 million plus GST.
However, it still reportedly needs somewhere in the region of $240 million to stabilise its balance sheet and stop it from going under. Last week it advised:
The Star is currently reviewing its financial and liquidity position with various advisers in the context of seeking to finalise its preliminary financial report for the financial year ended 30 June 2024 (FY24), including holding discussions with various stakeholders in relation to its liquidity position in light of adverse trading and other conditions. The Company confirms that the advice being provided has extended, from time to time, to considering the application of provisions of the Corporations Act 2001 (Cth) (including the safe harbour provisions).
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What's the latest on Star shares?
The company has been keeping shareholders informed and released another update after the market close on Wednesday.
It advised that it is continuing to work with various stakeholders and advisers in respect of its financial position. These discussions are ongoing and involve, among others, State governments, regulators and the company's lenders.
However, Star shares are not expected to be back from their suspension just yet. Management notes that as these discussions are ongoing, it is not yet in a position to finalise its preliminary financial report for FY 2024.
It intends to provide a further update in relation to these matters when it is able to do so. In light of this, Star shares will remain subject to their current suspension until the FY 2024 preliminary financial report has finally been released to the ASX. No target date has been released.
It certainly has been a tough time for the company's shareholders. Over the past five years, its shares have lost approximately 88% of their value. To put that into context, a $10,000 investment would be worth just $1,200 today.
And who knows what might happen when its shares finally return to trade, especially if the company requires a highly dilutive recapitalisation.
