Australia's Star Entertainment secures loan covenant waiver

(Reuters) -Australian embattled casino group Star Entertainment Group said on Tuesday it has finalised discussions with lenders, securing a loan covenant waiver for September 30 under its syndicated facility agreement.

The waiver, subject to the exchange of signed documentation, follows Star's disclosure in its unaudited preliminary financial report for 2025, released on August 29, where it noted ongoing talks with lenders regarding waivers for future financial covenant testing.

The Australian Financial Review reported on Monday that Star is in negotiations with lenders under the group's syndicated facility agreement in respect of potential covenant waivers.

The covenant waiver mitigates immediate risks of breaching financial agreements, which could have impacted liquidity or triggered repayment obligations.

The waiver comes as Star Entertainment has been facing scrutiny — including regulatory reviews and reduced patronage at its casinos — over its financial stability following declining revenues and regulatory challenges in recent years.

The development aligns with the impending release of the company's audited financial report for fiscal 2025, which Star confirmed will be lodged on Tuesday by the end of the day.

(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Alan Barona)

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