Star Entertainment Group (ASX:SGR) secured a last-minute deal from US casino operator Bally's Corporation to meet its financial obligations, the Australian Financial Review reported Monday, citing three unnamed sources familiar with the matter.
The rescue deal comprises AU$250 million from Bally's Corporation and AU$50 million from Star's largest shareholder, Bruce Mathieson, the report said.
A formal agreement could be signed as early as Monday, with Star expected to receive a part of the funding before the end of the week, according to the report.
The deal would increase Mathieson's stake in the cash-strapped casino company from the current 10%, as well as give him board representation. The billionaire has probity approval to raise his stake to 20% but would need to apply again if his ownership exceeds that threshold, per the report.
Star Entertainment did not immediately respond to MT Newswires' request for comment.
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