Casino insiders claim The Star Entertainment Group is headed for liquidation because administrators won’t see the value in keeping it running.
The Star is racing the clock to find a financial lifeline or risk liquidation and the potential loss of 8000 jobs across its sydney, brisbane and gold coast casinos.
Industry insiders have told this masthead of concerns that The Star’s plight might not attract an administrator if it runs out of money, leaving no other option than to wind up the company.
Analysts have suggested The Star will drain its cash reserves by the end of February and may be forced into voluntary administration unless further loan funds or government support was secured.
But a source, speaking on condition of anonymity, said: “Administrators are paid from the company’s assets.”
“They are also liable to pay for any costs incurred during administration.
“If there’s any lack of funds it’s the administrator who then becomes personally liable for any shortfall.
“Given that scenario you might struggle to find an administrator willing to take on the job if they consider a company too much of a basket case.
“If that occurred at The Star they would be facing liquidation and if technically insolvent – that…
