...big businesses that screwed up should not be getting second chances...why even contemplate a bailout?
...some shameful sense of entitlement these company executives have!
...why have so many ASX large companies failed their shareholders? No progress on corporate governance or is it the case that few bother to indulge into the details? Star Entertainment posts $1.7b loss
Zoe Samios
Struggling casino operator Star Entertainment has wiped more than a billion dollars in value off its assets and plans to cut $100 million in costs within six months after posting a $1.7 billion loss for the last financial year.
Star told the ASX on Wednesday the amount of revenue from its casinos across Sydney, Brisbane and the Gold Coast had deteriorated at a time when operating and remediation costs had risen.
Star chief executive Steve McCann thanked stakeholders for their support as it implements a new strategy and management team.
“There are a number of significant challenges currently facing the business from an earnings, liquidity and balance sheet perspective,” McCann said.
“We have identified a range of initiatives to improve business performance and cash flow, as well as providing the organisation with additional liquidity. However, time and flexibility is required to implement these initiatives.”
Queensland walks away from helping Star with its big tax bill James HallQueensland correspondent
Sep 26, 2024 – 1.54pm
Queensland has ruled out providing tax relief to Star Entertainment, blaming the company’s refusal to cut executive bonuses for the abrupt end of negotiations.
Just hours after the company secured a multimillion-dollar bailout from lenders, Queensland Premier Steven Miles said the government had discussions with the embattled casino group. “We won’t be returning to the negotiating table,” he said.
The deal between the Queensland government and Star, which runs casinos in Sydney, Brisbane and the Gold Coast, appeared imminent earlier this week and the state was expected to defer the payment of some $60 million in tax.
But, on Thursday morning, Mr Miles said this would not happen “while their executives insist on paying themselves performance bonuses”.
“There’s been no agreement whatsoever reached there, and we’re unlikely to reach one. Frankly, I find it astounding that they would be asking the state to defer taxes, to delay the payment of taxes, while paying themselves performance bonuses,” he said.
Mr Miles, whose government enters caretaker mode on Tuesday ahead of an October 26 state election, said the bonuses at Star “run into the tens of millions”.
Mr Miles has been under considerable scrutiny over his government’s close relationship with Star after it floated providing assistance earlier this month. Queensland’s Liberal National Party has said that if it is elected it will release a secret report that examined possible links between Star’s business partner and criminal gangs.
“We won’t be returning to the negotiating table,” Mr Miles said. “We were very reasonable in considering tax deferral, which is quite a common arrangement where you have taxpayers who can’t meet their tax obligations, but we wouldn’t entertain that kind of arrangement while they are also paying themselves those performance bonuses.”
The ASX-list company said late on Wednesday it had secured funds from its lenders in exchange for security over assets, including properties.
The deal appeared to end four weeks of emergency talks between newly installed chief executive Steve McCann and lenders, investors and state governments.
A second tranche, worth about the same, will be available to Star if needed but is conditional on the company raising at least $150 million from other sources.
