While his tenure begins now, McCann has already been instrumental in a series of key initiatives at the casino operator, including recent capital-raising efforts and securing a new AUD100 million ($64.6 million) debt facility, with potential access to an additional AUD100 million contingents on further milestones.
McCann previously outlined a comprehensive remediation plan to restore The Star’s regulatory standing. The plan includes 14 workstreams with specific milestones focused on cultural reform, safer gambling practices, enhanced compliance, financial crime prevention, governance improvements, and technology upgrades.
Approved by Queensland regulators, the plan aims for meaningful progress by March 2025. McCann highlighted the company’s dedication to resetting its culture and improving relationships with regulators, though he acknowledged the elevated costs of transformation and external advisory services.
McCann’s immediate priority is to deliver on the remediation plan while rebuilding trust with regulators and stakeholders. His leadership will be critical in navigating the complexities of compliance, operational restructuring, and financial recovery in the coming months.
The appointment comes as The Star faces financial challenges, primarily attributed to compliance failures identified in the Bell Two inquiry. These failures have resulted in an AUD15 million ($9.7 million) fine, a potential casino license suspension, and a sharp decline in the company’s stock value.
At the company’s Annual General Meeting, Chairman Anne Ward stressed that liquidity and overall financial viability remain the Board’s and management’s top priorities. Although a revised lending package has eased immediate pressures, Ward emphasized that more work is needed to stabilize operations and progress the company’s remediation program throughout 2025.
The company’s new AUD200 million ($129.2 million) debt facility aims to provide much-needed financial breathing room. However, the broader recovery effort hinges on addressing compliance issues and restoring market confidence, as the company navigates regulatory scrutiny and declining revenues.
Despite some progress, The Star’s financial performance continues to deteriorate. Trading of its shares on the Australian Stock Exchange resumed in September after a temporary suspension, but the company has since faced further losses at the EBITDA level.
Original article: https://www.yogonet.com/international/news/2024/12/03/87370-star-entertainment-appoints-steve-mccan-as-managing-director-and-ceo-nealle-o-39connell-steps-down
