*

Sells stake in Brisbane complex for A$53 million

*

Enters A$250 million bridging facility

*

Gets refinancing proposal with potential of up to A$940

million

debt capacity

*

Says Oaktree debt offer could not be finalised

(Recasts throughout)

By Scott Murdoch and Himanshi Akhand

March 7 (Reuters) - Star Entertainment said it

has received a refinancing proposal with potential to provide

debt funding of up A$940 million ($592 million) and an A$250

million bridging facility in a last-ditch effort to shore up the

cash-strapped casino group.

Australia's Star has been navigating mounting pressures to

avoid voluntary administration, and its ASX-listed shares have

been suspended because it has not published half-year results.

The embattled company said on Friday it was pursuing other

short-term liquidity initiatives as well because neither the

bridging facility, entered with U.S. hedge fund King Street

Capital Management, nor the refinancing proposal, with another

lender, will be available to address its immediate requirements.

"While there is more to do to have access to the funding

from the bridge facility and the refinancing proposal, these

initiatives, together with the agreement to exit Destination

Brisbane Consortium and expand our operations at the Gold Coast,

improve our capacity to have a viable future," Star CEO Steve

McCann said.

The company said it would sell its 50% stake in its Queen's

Wharf project in Brisbane to Far East Consortium International ( FRTCF )

and Chow Tai Fook Enterprises. The casino and hotel

complex was developed for A$3.6 billion, Star's website says.

It received payment of the first A$35 million tranche on

Friday, Star said.

For years, Star and larger rival Crown Resorts, owned by

Blackstone, have faced multiple inquiries into violations

of anti-money laundering rules and subsequent legal actions.

Star has poured millions of dollars into compliance upgrades

and new systems to restore its battered reputation and secure

casino licences. Those costs and weaker consumer discretionary

spending have hit the firm hard.

Star said in February it had received an A$650 million

refinancing offer from U.S. debt investor Oaktree. It said on

Friday that certain conditions of the Oaktree proposal have not

yet been met and the offer has not been finalised.

Far East Consortium ( FRTCF ) and Chow Tai Fook Enterprises will

become the sole owner of the Brisbane venture, which has luxury

hotels and restaurants and other amenities.

Star will, in turn, take on the investors' 66.67% stake in a

Gold Coast project in Queensland.

Far East said the deal was reliant on clearing regulatory

hurdles, including obtaining consent of the Queensland state

government, and foreign investment review approval.

"The Queensland government has not received any formal

submissions to consider a change to the ownership or management

of The Star's casinos in Brisbane or the Gold Coast," a

spokesperson for the state attorney-general said.

A representative of the Foreign Investment Review Board was

not immediately available for comment.

S&P announced on Friday it would remove Star from the

S&P/ASX200 index on March 24.

($1 = 1.5873 Australian dollars)