Las Vegas Sands shares dive amid fears of loan defaults

November 7, 2008 at 6:19AM

LAS VEGAS - Las Vegas Sands Corp., the international casino empire run by billionaire Sheldon Adelson, must raise new capital or slash development spending -- or both -- by next month to keep its lenders at bay, the company said Thursday. News that the company might break its loan agreements sent its shares plummeting 33 percent.

Adelson, 75, whose personal wealth is largely tied to his ownership in Sands, has seen his stake's value plunge along with the company's stock price, which has dropped 93 percent over the past year to $7.85. At one point his shares were worth $30 billion, making him the country's third-richest man, but that value has shriveled to $1.9 billion.

If Sands can't raise capital and defaults on portions of its long-term debt, estimated at $8.8 billion by Thomson Reuters, the company said it would have to suspend some if not all of its development projects.

Instead, the Las Vegas-based company hopes to boost earnings in its hometown, the company said in a Securities and Exchange Commission filing Thursday.

But casino revenue has been down for months in Las Vegas as fewer gamblers travel there.

ASSOCIATED PRESS

about the writer

about the writer

More from Business

card image

A new filing objects to a special master’s report in March that found “complete failure” of evidence by the government.

Gas was $2.39 at the BP gas station ay 46th Street at Lyndale in South Minneapolis. ] GLEN STUBBE * gstubbe@startribune.com Friday September 4, 2015 Pre-Labor Day gas prices in the U.S. are the lowest in 11 years, and under $2 per gallon in many states, though Minnesota's average is nearly 40 cents higher. Just one station, in Brainerd, was selling at $1.99. Checking on whether that is a promotion. Costco and Sams Clubs, usually the low price leaders, were 15 cents more. With some motorists' tho
card image