Trading in the shares of ailing casino and resorts group Star Entertainment Group has been paused and may be suspended if it fails to lodge its half year accounts today as it desperately tries to raise money to stave off collapse.
Once trading was paused Star Entertainment lodged an announcement with the Australian Securities Exchange (ASX) saying it was continuing to explore “possible liquidity solutions that might materially increase” its liquidity position and expected to receive one or more proposals today.
Star, which owns casinos in Sydney, Brisbane and on the Gold Coast, referred in the announcement to media speculation that its board had been unable to sign financial statements for the first half of the FY25 financial year (1HFY25), which must be lodged with the ASX today.
The Australian Financial Review newspaper reported Star had been unable to raise funding to meet near-term payments, including payroll, which put the company at risk of running out of cash and going into administration.
Star said the 1HFY25 report could be finalised only if it received liquidity proposals which directors believed were sufficiently capable of being progressed to finalisation in the context of determining whether the company could continue as a going concern.
“Shareholders should note that if the 1HFY25 Report is not lodged later today as required by the ASX Listing Rules, then the Company's shares will be automatically suspended from trading from Monday, 3 March 2025,” the company said in the ASX announcement.
“Such a suspension would continue until the 1HFY25 Report is lodged and the ASX determines that the Company's shares should be reinstated to quotation.
“As noted in the Company's recent ASX announcements, there remains material uncertainty as to the Group's ability to continue as a going concern.”
Earlier this month Star said it may not be able to continue as a going concern because it was running out of money and had been unable to reach an agreement on the sale of assets such as a 50% interest in its new Brisbane casino and entertainment resort.
The company had just $79 million in cash at 31 December 2024.
Star Entertainment (ASX: SGR) shares, which have fallen 95% over the last year, closed unchanged at 13 cents on Thursday, capitalising the company at $372.93 million.
