Overview

• The sale of Star’s 50% stake in Brisbane’s Queen’s Wharf to Chow Tai Fook Enterprises and Far East Consortium collapsed after partners refused a July 31 extension over unresolved commercial terms.
• Star will retain its half-stake in the Queen’s Wharf development and ownership of the Treasury Brisbane hotel while assuming about A$1.6 billion of project debt.
• The company faces immediate obligations to repay A$10 million by August 6 and reimburse A$31 million by September 5 or risk losing its one-third interest in the Gold Coast Dorsett hotel.
• Star remains liable for its 50% share of a A$1.4 billion debt facility due for refinancing in December and must contribute an estimated A$200 million in future equity.
• Shares fell to 10 cents, their lowest level since May, and management is weighing alternative partners or financing options for its Brisbane stake.