The ASX has officially suspended Star Entertainment Group Ltd (ASX: SGR) shares from trading as the casino operator continues its efforts to find new funding.
The company was suspended from quotation yesterday because it failed to lodge its 1H FY25 report by the deadline on Friday.
This has left Star Entertainment shareholders in limbo for now.
Image source: Getty Images
Star Entertainment shares frozen at 11 cents
The Australian Fianncial Review (AFR) reports that Star Entertainment Group CEO Steve McCann is trying to lock down more than $100 million in short-term funding.
This would reportedly be enough to keep the company alive until May.
The AFR quoted unnamed sources who said McCann was trying to gain access to $60 million held in escrow, plus a bridging loan.
The funds in escrow are from the sale of Star Entertainment's Sydney events centre and other spaces within The Star Sydney complex to Foundation Theatres.
The sale was announced in January and Star has been waiting for NSW Government approval.
If McCann can secure access to the funds and a bridging loan, it will buy him time to secure longer-term funding and debt refinancing over the next month or so.
The company has plainly stated that there is material uncertainty as to whether it can continue as a going concern.
On Friday, Star Entertainment shares fell 11.54% to close at 11 cents per share.
Investors rushed to sell after Star issued a statement warning it was unlikely to lodge its half-year report in time.
This sparked a sell-off, with Star Entertainment shares the most traded equity of the day.
Many investors would have seen Friday's session as possibly their last chance to sell their Star Entertainment shares before the company was potentially put into administration.
At Friday's market close, the company had still not filed its report.
This led to the ASX automatically suspending Star Entertainment shares from trading, effective from the market open yesterday.
Star Entertainment issues statement on shares suspension
Star Entertainment issued a statement yesterday confirming the trading suspension.
Management said:
The Company is unlikely to be in a position to lodge its 1HFY25 Report unless, and until, it has secured a refinancing commitment that would enable The Star to refinance all of the Group's existing corporate debt, as well as to provide additional liquidity.
Star Entertainment said it would keep the market informed of material developments.
The company re-stated that "there remains material uncertainty as to the Group's ability to continue as a going concern".
Star Entertainment share price snapshot
Star Entertainment shares have tumbled 79% over the past 12 months.
