(Reuters) -Australia’s Star Entertainment has agreed to a refinancing deal that would see U.S. peer Bally’s take control of the embattled casino operator, the Australian Financial Review (AFR) reported on Monday.
Under the deal, Bally’s will invest about A$250 million ($149.8 million) while Star’s largest shareholder, billionaire Bruce Mathieson, would provide more than A$50 million, the AFR reported, citing three sources with knowledge of the matter.
Star and Bally’s did not immediately respond to a request for comments.
Sydney-based Star, Australia’s no.2 casino operator, has been scrambling to stave off bankruptcy as years of regulatory scrutiny and lawsuits following money laundering allegations have left it cash-strapped and with limited lifelines.
Its shares remain suspended from trading on the Australian Securities Exchange as it continues to be unable to lodge its half-year results in the absence of an appropriate refinancing proposal.
($1 = 1.6694 Australian dollars)
(Reporting by Aaditya Govind Rao and Sameer Manekar in Bengaluru; Editing by Janane Venkatraman)
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