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Vegas Uncovered a guide to the Las Vegas Strip

Venetian and Palazzo Owners in Bankruptcy Fears

The Las Vegas Sands Corp. has casinos in all areas of the world. They have been a leader in the casino industry for many years, but that leadership may soon be coming to a screeching halt.

The company, which is under the control of billionaire Sheldon Adelson, saw their stocks drop over thirty three percent on Thursday. The drop came after investors began to worry about the possibility the company is heading towards bankruptcy.

Shares of Las Vegas Sands were down $3.81. They closed at $7.85. Although that is not the lowest the shares have been this year. A month ago the stock hit bottom at $4.32. Now, the company is trying to figure out a way to avoid bankruptcy.

The sudden dip in the stock may not be a surprise based on the current state of the market, but when compared to a year ago, it seems inconceivable the stock could have dropped this far. Last year, the stock hit a high of $150.

PricewaterhouseCoopers LLP is the companies auditor and they have admitted that if the company does not come up with addition funding, there is a chance that lenders could come looking for their money sooner rather than later.

The key for Sands at this point is to find a way not to default on debt covenants. If they do default, lenders would then have the right to demand payment sooner than the originally scheduled dates.

“The good times for the gaming industry are over, at least in the short term outlook. As we see with Las Vegas Sands, even the titans of the industry are having to make major concessions with respect to their financial structures, development plans, and operations. The industry is not for the timid right now,” said Senior Vice President at Spectrum Gaming, Joseph Weinert.

More on this here

November 7, 2008 - Posted by | Casinos, Chapter 11, entertainment, events, gaming, Holiday, hotel upgrades, Las Vegas, MGM, news, tipping, Travel, Vegas, vegas tips | , , , , , , , , ,

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