Australian casino operator Star Entertainment has put to a shareholder vote a proposal to settle outstanding interest with equity. The company plans to issue around 105.9 million shares to creditors Bally's and Investment Holdings, controlled by the Mathieson family. The vote is scheduled for 27 October.
The interest stems from convertible notes and subordinated debt issued as part of crisis financing in 2025. Star repaid the principal in November 2025, but the interest remained outstanding and continues to accrue at 9% per annum. The operator said preserving liquidity is a priority, prompting the decision to settle in shares rather than cash.
Bally's would receive approximately 62.6 million shares to cover AU$7.03 million ($4.9 million) in interest, while Investment Holdings would get 43.4 million shares for AU$4.87 million ($3.4 million). The issue price is set at AU$0.1123 per share. If shareholders approve, the shares will be issued on 28 October. Rejection would leave the obligations outstanding with interest continuing to accrue until Star decides to settle in cash.
Bally's holds roughly 38% of Star Entertainment following a debt-for-equity conversion late last year. Investment Holdings owns 23.16%. The same meeting will include a vote on five director appointments: chairman Soo Kim, George Papanier, Don Pasquariello, Brooke Lindsay and Grant Bowie. The first two are Bally's nominees; the rest are independent directors. Shareholders will also vote on an equity incentive plan for CEO Bruce Mathieson Jnr covering 12.8 million performance rights for FY26–FY27.
