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: http://www.bloomberg.com/apps/news?pid=20601087&sid=aws07wpBjjZI&refer=home Things you can do from here: - Subscribe to Behind every billionaire there is a Story! using Google Reader - Get started using Google Reader to easily keep up with all your favorite sites