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