The Star Entertainment Group (ASX:SGR) is nearing a deal to sell its stake in Queen's Wharf in Queensland to its Hong Kong-based partners Far East Consortium and Chow Tai Fook for up to AU$50 million as the troubled firm seeks to avoid going into administration, The Australian reported Thursday.
Chief Executive Steve McCann and UBS are working together on the deal on behalf of the gaming firm with Barrenjoey.
Star owes AU$430 million to a syndicate of lenders and also needs to pay back half the AU$1.6 billion of debt on its new Queen's Wharf hotel and casino complex development in Brisbane.
Star had received proposals for its stake in Queen's Wharf in February but it had concluded that none of them provided sufficient value for the company.
The firm's shares remain suspended by the ASX after the company failed to file its half-yearly accounts.
The Star Entertainment Group did not immediately respond to a request for comment from MT Newswires.
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