Stars Group, the Canadian firm that possesses PokerStars, has restructured its debt arrangement with the Scheinberg family, the former proprietors of PokerStars. Initially, Stars Group was obligated to repay $197.7 million by the first of February. To secure a postponement on that remittance, Stars Group has consented to a revised strategy where they’ll furnish a significant non-returnable disbursement to the Scheinbergs.
As a refresher, Stars Group acquired PokerStars from the Scheinberg family back in 2014 for a staggering $4.9 billion. They covered the majority upfront, but this $197.7 million constituted the final portion of that acquisition.
This amended agreement provides Stars Group with some financial flexibility. They won’t have the burden of that substantial payment looming over them, enabling them to concentrate on augmenting their cash holdings throughout 2017. This implies they can circumvent accruing additional debt or grappling with the intricate financial tactics associated with it.
Rafi Ashkenazi, the Chief Executive Officer of Stars Group, appears content with the accord, as it furnishes them with a more transparent route to achieving a debt-free status.
We are truly pleased with our existing strategy. It demonstrates the strength of our business framework in producing revenue. This empowers us to continue allocating resources towards expansion, all while honoring the financial commitments we established with the prior proprietors. Considering the positive trajectory of 2016, from both a functional and economic standpoint, we are certain that we will encounter no obstacles in settling the outstanding payments associated with the purchase price according to the agreed-upon schedule.
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