Star Entertainment’s corporate lenders have committed to loaning it up to another $200 million, but the Queensland government says talks over possible tax relief are at a stalemate.
Star announced on Wednesday evening its corporate lenders had agreed in writing to the $200 million debt facility at an interest rate of 13.5 per cent.
All but $34 million of the casino group’s $334 million in existing debt has also been repriced at that moderately high rate, reflecting concerns about Star’s financial viability.
Meanwhile, Queensland Premier Steven Miles said talks with Star on possible tax relief hit a stalemate over the issue of executive compensation.
“There will be no consideration of any kind of arrangement while their executives insist on paying themselves performance bonuses,” Mr Miles said.
The premier called it “astounding” that Star would ask the state to defer taxes while paying its executives performance bonuses that he said reportedly run into the tens of millions of dollars.
“We won’t be returning to the negotiating table,” he said.
“We were very reasonable in considering tax deferral, which is quite a common arrangement where you have taxpayers who can’t meet their tax obligations, but we wouldn’t entertain that kind of arrangement while they are also paying themselves those performance bonuses.”
Star declined to comment on the matter.
