Investing.com-- Australia’s Star Entertainment Group Ltd (ASX: SGR ) said on Wednesday that it has failed to secure a new debt package after extensive negotiations with Salter Brothers Capital fell through, deepening concerns over its financial stability.

The embattled casino operator had been seeking a refinancing proposal that would have allowed it to address its existing debt obligations.

However, after prolonged discussions with Salter Brothers and various stakeholders, the company was unable to meet key lender conditions, particularly around security arrangements for non-gaming assets. As a result, the refinancing proposal was withdrawn.

The failure to secure new funding raises fresh concerns about Star’s liquidity, with the company warning of "material uncertainty" over its ability to continue as a going concern.

The group has also been unable to file its half-year financial report for the period ending December 31, 2024, leading to the suspension of its shares from trading.

Star said it is continuing to explore alternative liquidity solutions, including ongoing discussions with Bally’s Corporation following a proposal received last month.