Star Group is requiring insurance payout from an insurer

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Star Group is requiring insurance payout from an insurer after its closing earlier this year.

Due to the COVID-19 pandemic governments ordered shutdowns of so many places. And on March 23, the Group stopped its gaming activities in Sydney, Brisbane and the Gold Coast.

Chief executive Matt Bekier told that the company is still trying the matter against its insurers. He also mentioned that it is not a pandemic claim, because they have an insurance policy wording which creates opportunities around the nature of the shutdown that was forced on them. So, they think they have got a reasonable prospect.

The company is seeking declaratory relief. According to him, in the eight months to the end of February, the company’s normalised earnings before interest, tax, depreciation and amortisation increased 12.1 per cent and growth had been quickening. EBITDA was down 22.8 per cent to $430 million by the end of the financial year. The group reported a statutory net loss of $95 million.

“This is obviously not a slam dunk, but we think we have a reasonable position,” he said.

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