Posted on: January 10, 2025, 03:03h.
Last updated on: January 10, 2025, 03:03h.
Embattled Australian casino operator Star Entertainment has resolved a dispute over a luxury yacht by selling the vessel to a wealthy businessman who previously sued the company for alleged breach of contract.
Facing a severe financial crisis, Star Entertainment is selling off assets to recover millions of dollars in losses.
Among these assets was a 145-foot Benetti superyacht, The Star, which was previously used to entertain high-end clients.
Star agreed to sell the yacht to Platinum Capital Partners, the private investment firm of Cypriot financier Roys Poyiadjis, for A$8.6 million (US$5.3 million), as outlined in court documents.
Undervalued Sale?
Star purchased the yacht in 2019 for an undisclosed amount and spent A$4 million on renovations. Similar refurnished Benetti superyachts can sell for over A$20 million (US$12.3 million), according to reports from the Australian Financial Review (AFR).
Poyiadjis filed a lawsuit against Star last April, alleging that the company had initially agreed to sell the yacht to his firm, but later backed out of the deal after receiving a deposit and other payments.
The buyer had arranged to ship the yacht from Newcastle Harbour in New South Wales to Mallorca, Spain, where Platinum intended to offer it for charter to affluent tourists.
Poyiadjis sought damages of US$6 million from the casino operator in his lawsuit. The legal complaint and Star’s counterclaim were both withdrawn shortly after the yacht sale was announced by the agent.
Financial Woes
Shares in Star Entertainment plummeted to a record low after the company revealed it had only A$79 million (US$49 million) left in cash and had incurred A$107 million (US$66 million) in expenses in the past three months.
The operator is working towards meeting the conditions required to access the second portion of a A$200 million (US$123 million) debt facility established in September. However, Star acknowledged that fulfilling these conditions is challenging given the current circumstances.
Star continues to face repercussions from a critical report released by NSW regulators in September, determining the casino operator was not suitable to retain a gaming license for its flagship property, Star Sydney.
The license has been suspended since 2022, when an investigation found that the operator facilitated money laundering by criminal groups in private VIP rooms and allowed Chinese high rollers to withdraw $900 million for gambling activities using China UnionPay (CUP) credit cards, disguising these transactions as hotel expenses.
Reports suggest that Star could enter voluntary administration in the coming months, with its hotels potentially being sold to the highest bidders, according to AFR.