March 10 (Reuters) - Star Entertainment said on

Monday that it had received a proposal from U.S.-based casino

operator Bally's Corp to inject A$250 million ($157.63

million) of funding into the Australian firm.

The proposal comes at a time when the embattled Australian

firm is seeking critical funding to stabilise its finances and

serves as a last-minute effort to take control of the casino

group.

Under the terms of Bally's offer, the U.S. company would

provide a capital raise of A$250 million, leading to Star

issuing convertible notes to its existing senior lenders.

The notes would be convertible into at least 50.1% of Star's

fully diluted ordinary shares.

Last week, Star said it would delay the release of its

interim financial results until a rescue financing package was

secured, with its shares remaining suspended from trading.

The company's financial woes underscore the mounting

pressures on Australia's casino sector, which has faced

heightened regulatory scrutiny and economic headwinds in recent

years.

($1 = 1.5860 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by

Subhranshu Sahu)