After questions raised by the Australian Securities Exchange (ASX), The Star Entertainment Group has defended its decision to not disclose a AU$1.44bn (US$966m) non-cash impairment charge prior to its latest financial report.
In a letter issued to The Star on October 15, the ASX raised several questions, namely whether the announcement of a new debt facility of up to AU$200m (US$134m) from its corporate lenders, and the material non-cash impairment charge, constituted significant information expected to materially affect its securities’ price and should have been disclosed.
Regarding the AU$200m debt facility, The Star responded that it first became aware of the agreement on September 25, 2024, and that it announced the entry into that arrangement on the same date.
‘This announcement was made promptly and without delay after the relevant commitment documentation was executed by The Star’s lenders and The Star. At all times prior to this documentation, there was no certainty that any agreement would be reached,’ The Star company secretary Jennie Yen noted in the response.
As for the anticipated AU$1.44bn non-cash impairment charge, The Star stated that it did not believe the release of this information would materially affect the price or value of its securities.
Source: Asia Gaming Brief
