Sent to you by Sean McBride via Google Reader: Las Vegas Sands Plunges
on Default, Bankruptcy Risk via Behind every billionaire there is a
Story! by admin on 11/6/08
Las Vegas Sands Corp., billionaire Sheldon Adelson’s casino company,
fell the most in New York trading since went public after saying it may
default on debt and face bankruptcy.The casino owner, which had $8.8
billion in long-term debt at the end of June, said in a regulatory
filing today that it probably won’t meet the requirements of loans
arranged by Citigroup Inc., Goldman Sachs Group Inc. and Lehman
Brothers Holdings Inc. unless it cuts spending on developments, boosts
earnings at its Las Vegas Strip casinos and raises more capital.

The reversal of fortune is a black eye for the 75-year-old Adelson, who
was once America’s third-richest man on the strength of his Las Vegas
Sands holdings. The Las Vegas-based company’s dwindling cash flow is
threatening $16 billion worth of developments in Macau, China, and
Singapore, where Las Vegas Sands is building resorts to cater to
wealthy Asian gamblers.

“They need to raise money,” said Keith Foley, a New York- based analyst
at Moody’s Investors Service Inc. “It’s getting to the point where they
need to do something now.”

The shares dropped $3.81, or 33 percent, to $7.85 at 4:04 p.m. in New
York Stock Exchange composite trading, the biggest decline since its
initial share sale in December 2004. Las Vegas Sands had tumbled 91
percent before today this year as investors dumped the stock, worried
that falling casino winnings and the global financial meltdown would
leave the company without enough cash.

read the rest published by Bloomberg here:

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