The Star Entertainment (ASX:SGR) said it currently has reasonable grounds to believe the group can meet its liabilities over the next 12 months as a going concern, but warned there is no certainty that the conditions required to support that view can be satisfactorily resolved in a "timely manner," according to a Monday Australian bourse filing.

The company said it has insufficient funds to cover all its existing legal obligations and potential liabilities, and is heavily reliant on a favourable court ruling in the AUSTRAC matter, with an adverse decision potentially leaving the group unable to continue operating.

The company said it also needs to successfully cut costs and grow revenue in fiscal 2027 to satisfy lenders, continue making progress on its casino remediation plan to get its licenses reinstated, and secure an extension of its transactional banking facilities beyond their current Sept. 30 expiry.

If the group cannot resolve these issues in time, there is "significant doubt" about its ability to survive as a going concern and meet its financial obligations over the next 12 months, the filing added.

The company's shares fell 4% in recent Monday trade.