Shares in Star Entertainment Group have plunged after negotiations collapsed on the sale of its stake in a major project.
The embattled casino operator had since March been planning to sell its 50 per cent interest in the Queen's Wharf Brisbane hotel-casino hub to Chow Tai Fook and Far East Consortium.
But Star confirmed its Hong Kong partners, who each hold a quarter-stake in the $3.6 billion riverfront mega-project, had walked away from the $53 million sale by Friday's deadline.
Star offered to extend their negotiating framework for another week but the duo rejected the proposal and walked away after the parties were unable to reach a final agreement on a number of commercial issues.
That means Star has until next Wednesday to repay Chow Tai Fook and Far East Consortium a $10 million advance on the sale it received in March and until September 5 to repay another $31 million.
Star had $234 million in available cash as of June 30, but in the June quarter it burnt through nearly $25 million a month in operations.
The company could be required to sink more money into the Queen's Wharf development - beyond the $200 million it is estimated to be on the hook for - once the project's debt facility expires in December.
The cost of the 12-hectare development has blown out and rapidly become a financial albatross.
Star could lose even more money once stricter limits on wagering with cash come into effect at its Sydney casino later in August.
The limit will fall from $5000 to $1000 on August 19 unless NSW regulators agree to a delay.
Financial crimes watchdog AUSTRAC is also seeking a $400 million penalty against Star for letting VIPs launder dirty money at its casinos.
Star says a fine of that magnitude would send it into insolvency.
A spokeswoman for Queensland Attorney-General Deb Frecklington said the Crisafulli government's focus remained on Star workers as the company navigated its commercial negotiations.
Star shares on Friday dropped 16.4 per cent to close at 9.2 cents and had reached an intraday nadir of 9.1 cents.
As recently as 2022, Star shares had traded as high as $3.25.
