Las Vegas Sands to face bankruptcy?
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Gaming giant, Las Vegas Sands Corp., has said that it may default on debts and face bankruptcy, Bloomberg has reported. The casino owner, which had US$8.8 billion in long-term debt at the end of June, said yesterday that it probably won’t meet the requirements of some loans unless it cuts spending on development projects, boosts earnings and raises more capital.
Spending declines on the Las Vegas Strip and restrictions on visas in Macau have hit the company hard, and “raise a substantial doubt about the company’s ability to continue as a going concern”, according to the report.
Billionaire owner Sheldon Adelson, once America’s third richest man, invested an additional US$475 million only in September, and hired an investment bank to raise more capital. Dwindling casino revenues however, have seen the company struggle to meet loan repayments.
The filing sparked new concerns that Las Vegas Sands won’t be able to finish Singapore’s first casino or a 20,000-room complex of hotels and casinos in Macau.
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