Stella sells core assets to reduce debt

Written on the 12 May 2009

 

THE Stella Hospitality Group continues to hose down concerns that it is facing financial difficulties following the release of some of its core Gold Coast and Port Douglas assets.
The Bob East helmed company has already sold one of its largest overseas holdings, Protea Hotels, which was first acquired by then MFS-controlled Stella Group for $225 million. The recent sale price is undisclosed.
The group has reached an agreement to restructure its debt facility to enhance liquidity and provide for future growth.
“Following discussions with our lender UBS, Stella reached agreement on a restructure of its debt facilities that significantly enhances Stella’s current liquidity position,” says chief financial officer Elizabeth Gaines.
“Stella has a very good relationship with UBS and following the disposal of a number of non-core assets, continues to work on the long-term structure of the group.”
The CVC Asia Pacific majority-owned (65 per cent) company is reportedly in talks with an Asian consortium to snap up more than 20 of its 140-odd management rights businesses CVC outlaid $1.3 billion for a 65 per cent stake in the company in 2007 which included a $409 million cash payment to MFS (now Octaviar) and the assumption of $860 million in debt.
CVC is seeking $249 million in compensation from the embattled Octaviar.
With in excess of 15,000 rooms across more than 140 branded and independent properties, Stella Hospitality Group ranks as the third largest branded hotel operator in Australia.
The Group expects to post record third-quarter results.

Latest News

SUPREME COURT ORDERS OCTAVIAR GROUP TO WIND UP

THE Queensland Supreme Court has ordered the Octaviar Group of companies (formerly known as MFS Group) to be wound...

CEOS BRAVE THE COLD TO RAISE $1.4 MILLION FOR THE HOMELESS

MORE than 400 executives confronted the cold last night in the annual Vinnies CEO sleepout, which took place benea...

JENNIFER WESTACOTT ON BANK TAX: IT EXPOSES GOVERNMENT "DESPERATION"

South Australia's new bank levy exposes the desperation of a government that is unable to get its own budget and ...

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

Related News

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

THE DOCTORS WHO PLUNGED INTO THE SHARK TANK AND SURVIVED WITH A $500,000 INVESTMENT

THEIR mission is to change the face of cancer care with an app that empowers and connects patients and care givers...

IMF BRACES FOR BIG LOSS FOLLOWING WITHDRAWAL FROM SPOTLESS CLASS ACTION

LITIGATION fund IMF Bentham (ASX: IMF) is set to lose as much as half a million dollars after it ceases funding one o...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter