Star Entertainment Resolves Superyacht Dispute Amid Financial Woes
Embattled Australian casino operator Star Entertainment has found itself in the midst of a heated dispute over a luxurious super yacht, known as The Star, which has now been resolved through a surprising turn of events. The company has managed to settle the conflict by selling the vessel to Cypriot financier Roys Poyiadjis, who had previously sued Star Entertainment for allegedly going back on their agreement.
Striking a Deal
The 145-foot Benetti superyacht, The Star, was initially purchased by Star Entertainment in 2019 for an undisclosed amount and later underwent a A$4 million refurbishment. However, the company decided to part ways with the yacht, leading to a legal battle with Poyiadjis, who had already invested in the acquisition. The yacht was eventually sold to Platinum Capital Partners, Poyiadjis’s private investment vehicle, for A$8.6 million (US$5.3 million) following court proceedings.
Financial Turmoil
The sale of The Star comes amidst a dire financial situation for Star Entertainment, with the company facing a severe liquidity crisis that has raised concerns about its future. Recent reports indicate that the operator has just A$79 million (US$49 million) left in its coffers, having spent A$107 million (US$66 million) in the last three months alone. These financial struggles have prompted Star Entertainment to engage in a series of asset sales, including the superyacht, in an effort to recover substantial losses.
Regulatory Challenges
Star Entertainment’s woes extend beyond its financial troubles, as the company continues to grapple with regulatory hurdles following a scathing report released by NSW regulators last September. The report deemed the operator unsuitable to hold a gaming license for its flagship Star Sydney property, citing instances of money laundering and fraudulent activities involving Chinese high rollers. With its license suspended since 2022, Star Entertainment faces an uncertain future, with some lenders predicting the possibility of voluntary administration in the near future.
In the midst of this tumultuous period, the resolution of the superyacht dispute stands as a pivotal moment for Star Entertainment, offering a glimmer of hope amidst a sea of challenges and uncertainties. As the company navigates through these turbulent waters, the sale of The Star serves as a reminder of the harsh realities facing one of Australia’s most prominent casino operators.
