Investing.com-- Star Entertainment Group’s (ASX:SGR) board agreed to a $300 million lifeline led by Bally’s Corporation, the Australian Financial Review reported on Monday, with the struggling casino operator expected to see some relief from the increased funding.
Bally’s will invest about $250 million in Star, while its largest shareholder, billionaire Brude Mathieson, will inject over $50 million, the AFR report said, citing three sources with knowledge of the matter.
Star’s board and its lenders agreed to the deal over the weekend, with the casino operator expected to receive some of the new funding by as soon as this week.
Several reports had shown Bally’s interest in Star earlier this year. The new deal is expected to offer the casino operator a lifeline, as it struggles with dwindling cash reserves in the aftermath of a growing debt crisis and a series of damning regulatory investigations.
Star’s shares remained suspended on the ASX, with the company having recently flagged a “material uncertainty” over its ability to continue as a going concern.