Star Entertainment Group shares have dropped to a two-week low as the casino operator waits to hear the terms of a financing proposal that could rescue it from the brink of insolvency.
The company said in a statement to the ASX on Friday morning that it was continuing to explore "liquidity solutions" that could materially increase its liquidity position, and anticipates receiving one or more proposals during the course of the day.
Its reputation tarnished by previous scandals and its operations hampered by new rules and regulations, the casino operator has been losing money hand over foot.
The group had just $79 million in cash available as of December 31, having lost $107 million in the previous three months, leaving it in precarious financial straits.
"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," Star said in Friday's announcement.
Star has a $100 million financing facility with its lenders but needs to arrange more additional lending to access that cash and has not been able to agree with lenders on terms.
Queensland Premier David Crisafulli told reporters he wasn't commenting on the financial viability of Star.
"My only concern is for the working people there. My non negotiable is that place has got to stay open," he said.
"If whoever runs it in the future wants to talk to us about what future opportunities look like it ... it is about the workers."
The NSW government, meanwhile, said it was watching developments closely including the impact on jobs guarantees for staff.
"They haven't breached that yet," senior minister Penny Sharpe told reporters.
"Star has to maintain itself as a viable casino ... we're obviously been working with them over a period of time on a range of issues including the importance of the employment that is there and will continue to do so."
Star shares had dropped 15.4 per cent to a two-week low of 11 cents in midafternoon trading, after being briefly placed in a trading halt on Friday morning.
Star is due to release its financial results on Friday, but said the half-year report would only be finalised if the liquidity proposals are received and are sufficiently capable of being able to shore up the Star's financial status.
