Fear and Bankruptcy in Las Vegas

[marmar]

Las Vegas Sands signals it may not survive downturn
Casino company's shares tumble more than 33% on bankruptcy fears

By William Spain, MarketWatch


CHICAGO (MarketWatch) -- Shares of Las Vegas Sands crumbled more than 33% Thursday after the one-time high-flying casino company said it will likely violate debt covenants this quarter, raising the specter that it might not survive the current economic crisis.

In a filing with the Securities and Exchange Commission, Sands -- controlled by billionaire Sheldon Adelson -- told regulators that the size of its debt is now above the agreed maximum leverage ratio. And, if it can't drum up more financing, the company said it could well default on its IOUs.

Shares of Sands plummeted $3.81 to close at $7.85. The stock had been rebounding lately on hopes that Adelson and his family would pump some of their own cash into the company to fund ongoing developments and operations. After running up to as high as $150 last year, the stock cratered at $4.32 last month.

The company's auditors, PricewaterhouseCoopers LLP, said in a filing that if Sands does default on debt covenants, lenders could demand to be repaid sooner, something that "raises substantial doubt about the company's ability to continue as a going concern."

The economic meltdown has battered Las Vegas particularly hard as customers stay away in droves and the ones who do arrive spend less. In addition, Sands' properties in Macau have been hurt by new restrictions on visas for gamblers arriving from mainland China. .......(more)

The complete piece is at: http://www.marketwatch.com/news/story/Las-Vegas-Sands-crumbles-bankruptcy/story.aspx?guid=%7BEBDD5843%2D119A%2D4FBE%2DA659%2D47F98B1D1E6D%7D

[thunder rising]

1. You know it's bad when the Mafia is taking a hit

[SpiralHawk]

2. "Pluto is about to leave Sagittarius. Smirk." - Ronald Reagan's Dead Republicon Astrologer*

"And you can BET your bottom dollar that the ramblin-gamblin Republicon OCCULTISTS know what that means for the casinos, and the other republicon chimeras. Bwaa ha ha ha ha. Smirk."

- Ronald Reagan's Dead Republicon Astrologer*


* Courageously channeled by Ye Olde Spirale Hawke from the Vast Netherworld of Republicon Occultism.