The news: Troubled casino operator Star Entertainment said it will be required to pay $36.5 million should it fail to strike a revised deal with joint venture partners Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium over the sale of its interest in the Queen’s Wharf casino and entertainment complex in Brisbane.
The numbers: Star said that if long form documents are not entered into by an extended deadline of 31 July, it will be obliged to repay $10 million of proceeds received from the joint venture partners.
It would also have to reimburse the pair for payments made to the Brisbane resort since 31 March, currently amounting to around $26.5 million.
The context: A binding heads of agreement was announced in March and long form documents between Star and the joint venture partners for the transaction were required to be entered into by 30 April.
However, the deal was due to terminate today after Chow Tai Fook and Far East Consortium issued a termination notice last week.
Star said the parties agreed to a set of principles this morning, which will see negotiations progress with a view to finalising long form documents by 31 July.