The Star Entertainment Group has secured an extra month to finalise the paperwork for its binding heads of agreement with Chow Tai Fook Enterprises and Far East Consortium International.
The deal, which would see The Star sell all of its assets in Brisbane, Australia, in return for full ownership of key Gold Coast assets, was first announced in March.
Last week, the casino operator said its business partners had requested to terminate the agreement after the deadline for its completion was missed.
However, in an update on Monday, The Star said it now has until July 31 to get the terms of the deal arranged.
Should the necessary long-form documents not be finalised by then, The Star must repay AU$10m of proceeds it received from Chow Tai Fook Enterprises and Far East Consortium International.
A missed deadline would also see The Star have to repay approximately $26.5m in reimbursements to the business partners for equity contributions that have been made by them to the Destination Brisbane Consortium since the end of March this year.
“The Star will provide an update if there are further material developments with respect to its negotiations with its Joint Venture Partners, including any material changes to the HoA [Heads of Agreement] which are agreed as part of the long form documents,” the company said.
There remains similar uncertainty over whether Bally’s Corporation’s investment into The Star to support the troubled casino operator will remain viable if the Australian Transaction Reports and Analysis Centre (Austrac) fines the company.
