TLDR
- Star Entertainment wants to settle AU$11.9 million (US$8.4 million) in unpaid interest by issuing about 105.9 million new shares.
- The shares would go to Bally’s and Investment Holdings, which is controlled by the Mathieson family, at AU$0.1123 each.
- The interest comes from the company’s 2025 rescue financing and grows at 9% a year.
- Shareholders will vote at the October 27 AGM, and shares would be issued October 28 if approved.
- The meeting will also cover five director elections and performance rights for CEO Bruce Mathieson Jnr.
Star Entertainment Group is asking shareholders to approve a plan to settle AU$11.9 million (US$8.4 million) in unpaid interest with new shares instead of cash.
The Australian casino operator outlined the proposal in its annual general meeting notice, released on September 24. Shareholders will vote on it at the meeting on October 27.
Under the plan, the company would issue about 105.9 million shares. They would go to Bally’s and Investment Holdings, a company controlled by the Mathieson family.
Where the Interest Comes From
The interest is tied to convertible notes and subordinated debt issued as part of Star Entertainment’s 2025 rescue financing. The principal on that debt was settled in November 2025.
The interest, however, was left unpaid. It continues to grow at a rate of 9% per year.
Star Entertainment said liquidity remains a key priority. The company said it wants to settle the full amount in shares so it can preserve cash for its casino operations.
Bally’s would receive about 62.6 million shares to settle AU$7.03 million (US$4.9 million). Investment Holdings would receive about 43.4 million shares for AU$4.87 million (US$3.4 million).
Both share issues would be priced at AU$0.1123 per share.
Bally’s took a stake of about 38% in Star Entertainment in late 2025. It did so by converting its loan into equity after receiving regulatory approval.
Investment Holdings held a further 23.16% of the company, according to the AGM notice.
Board Elections and CEO Incentives
Shareholders will also vote on five directors appointed since the last annual meeting. They are chairman Soo Kim, George Papanier, Don Pasquariello, Brooke Lindsay, and Grant Bowie.
Kim and Papanier were nominated by Bally’s. The other three are classified as independent directors.
A separate resolution asks shareholders to approve about 12.8 million performance rights for CEO and managing director Bruce Mathieson Jnr. The rights fall under the company’s FY26 and FY27 long-term incentive awards.
The rights will only vest if certain conditions are met.
If shareholders reject the share issue, the interest will keep building at 9% per year. It would stay outstanding until the company chooses to pay it in cash.
If the shares are issued later than planned, more shares would be needed to cover the extra interest that builds up.
If shareholders approve the plan on October 27, Star Entertainment expects to issue the new shares the following day, October 28.
