The Star Entertainment Group Ltd (ASX: SGR) share price has fallen off a cliff on Friday.
Star Entertainment shares crashed 23% to an all-time low of 10 cents per share at lunchtime.
This followed an announcement from the casino operator that it would likely not be able to lodge its 1H FY25 report, due today, unless it can find new liquidity before the market close.
This has prompted many investors to sell their Star Entertainment shares today.
At the time of writing, Star Entertainment is, by far, the most traded ASX stock on the market today.
More than 90 million Star Entertainment shares have already been traded today. To put that into context, the second-most traded company has seen less than 50 million shares traded.
Why is the Star Entertainment share price plunging?
A pause in trading for Star Entertainment shares was announced shortly before the market opened on Friday.
Just after 10.30am, the beleaguered casino operator released an update regarding its 1H FY25 report, which is due to be lodged today.
Star Entertainment management told investors that "it is likely" the 1H FY25 report won't be finalised unless they can find new sources of cash today.
Star Entertainment confirmed it is "continuing to explore possible liquidity solutions".
The company said it expects to receive some proposals during the course of the day.
The directors will need time to assess the proposals and determine whether they will be enough to allow the company to "continue as a going concern".
In the statement, management said:
It is likely that the 1HFY25 Report will only be able to be finalised if the Company has received liquidity proposals which, after appropriate consideration by the Directors, are sufficiently capable of being progressed to finalisation in the context of determining whether the Company can continue as a going concern.
If Star Entertainment is not able to secure the funding it needs to finalise its 1H FY25 report today, the ASX will automatically suspend the stock from trading.
The suspension will begin on Monday and continue until the 1H FY25 report is lodged. The ASX would then decide whether the company's shares should be reinstated to quotation.
Management added:
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.
Some investors may be seeing today's session as their last chance to sell their shares if the company goes bust.
Star Entertainment share price snapshot
The Star Entertainment share price has fallen by 78% over the past 12 months.
