(Reuters) - Australian embattled casino operator Star Entertainment said on Friday that its casino licence for Star Sydney will remain suspended until at least September 30, as advised by the New South Wales Independent Casino Commission (NICC).

Star also noted that the NICC-appointed manager, Nick Weeks, will continue to have oversight of casino operations at Star Sydney until at least September 30.

The NICC's chief commissioner, Philip Crawford, said that while Star's submissions on its suitability to hold a casino licence in New South Wales "demonstrated steady improvements" in the firm's remediation, "uncertainty around The Star's financial situation meant that progress was slow, and The Star's licence suspension should remain in effect."

This creates worries for Star, which opened its books in early March to investment group Salter Brothers for a debt refinancing proposal worth up to A$940 million ($591.26 million), as the extension may create hurdles in the due diligence process.

Star did not immediately respond to a Reuters request for comment.

($1 = 1.5898 Australian dollars)