Embattled casino operator The Star Entertainment Group (ASX:SGR) has taken a critical step toward financial stability, announcing a non-binding agreement with US-based private credit manager WhiteHawk Capital Partners to refinance its total existing debt.
The proposal aims to provide the group with much-needed incremental liquidity to fuel its ongoing turnaround strategy under new leadership.
While the term sheet remains non-binding, both parties have set an ambitious timeline to formalise the deal.
They are currently working toward a binding commitment by the end of March, with the goal of finalising the entire refinancing package by mid-May.
The move is seen as a vital bridge for the company as it navigates a complex recovery path following significant regulatory hurdles and management shifts over the past year.
In tandem with the WhiteHawk negotiations, The Star is proactively engaging with its current lenders to secure covenant waivers for the period ending December 2025.
The waivers are essential to prevent a technical default and provide the necessary "breathing room" while the new long-term funding structure is implemented.
However, the company cautioned shareholders that a successful outcome with existing lenders is not yet guaranteed.
The strategic refinancing follows a period of intense restructuring, including a recent majority stake acquisition by Bally's Corp, as the operator fights to secure its future in the Australian gaming landscape.
At the time of reporting, Star Entertainment's share price was $0.125.