Las Vegas Sands Corp., billionaire Sheldon Adelson’s casino company, fell the most in New York trading since going 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.
(Bloomberg.com)
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6 Responses
I’m sure we wont have to collect for him anytime soon the mattress is nice and full
vihamisachkim bikuvia
he is a huge bal tzedaka
on February 8th on yeshiva world
“The world’s richest Jew and Boston native, Sheldon Adelson, has made history after pledging to give $200 million annually to Jewish philanthropy.”
Real Tzedaka? Like poor people? Or Jews for Animal Rights-type Tzedaka?
not only a huge bal tzedaka, but also learning Torah – we all need H’ rachamim so be careful how you disparage another Jew – Only H’ can judge us.
#1, eric55. I hope you are right, for a change.
#4, Turkeyneck. Shouldn’t you be in school and not playing on the computer? So, turkeyneck, is it fair to say you are a bird brain?