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Las Vegas Sands signals it may not survive downtur

Good times to let go some of these banks counter and vested in the project until further development.

If another media print what kind of exposure if sands default, and the balance funding needed to complete the project. Will sent fear right into the hearts of investors. In case it create Panic selling.

 

i believe if SANDS sank

the next Quater, the 3 banks will writedown a huge lump sum

 

 

Once this started, this will be headline news for Singapore. Someone got to do OT to rescue soon, if not big big problem coming.

If Sand bust, a domino effect will hit alot of companies in singapore include asia. Then i cannot stand outside the casino to sell ya-pao, pao-ya

 

I think everybody would like to know is if Sands has pay up since the project started ?

100M = Who R who the sucker - All Singaporean and Government

500M = Banks and all pple working on the project are sucker

2000M = Sands R sucker

5200M = Why....I am sorry to heard that you are going under......

The number 5,200,000,000 singa dollar. Wonder how many chicken rice I can buy with that........

 

AK_Francis      ( Date: 07-Nov-2008 11:52) Posted: Wah! like that also can ah. Means better avoid local banks at this moment. On the other hand, AK guess gov will not allow these 2 IR to fail ones. 150 b S$, being the backing for the financial sectors. Andrew      ( Date: 07-Nov-2008 11:43) Posted: I am not surprise if it is a Yes.  Where to get so much Sing dollar ? Not to forget, the developer, the main contractor, the sub-contractors......if bloomberg can report Sands may default.....I think it will.....as all creditor is q-ing up alredi.... Just look at the stock price alredi tell the story......exactly same as AIG....

 

oh dear, how would this bad news affecting on Gen Int shares? Tot to invest this counter.

 

On hindsight,the IR project is a curse rather than a blessing.

In a recession,how many tourists can the IR draw?

 

 

This is bad, if Sand file for Chapter 11, this is bad for Singapore Bank and government. Transformer no money to buy!!!!!!

Our government pledge to compete, meaning likely will  use Taxpayer money to fund the casino project. So fast got 4billion handout to give Wah!! Dunno got anything left to help singaporean in crisses after that since a large portion will be use on Sands. Sob Sob. If i am Sands i will say i no money also lor, got big loan approval without collleteral why dun take. 

Maybe Singapore Governement should talk to US Government, ask them to help their own company. Storm brewing, avoid buying banks stocks and relate company that heavily vest in the project. Wait until everything clear up, remember china aviation oil rumors in the market circulating for sometime before it go bust.

 

 

The next to fall is construction companies

banks will hit if borrow money to SANDS

 

 

 

Nov. 7 (Bloomberg) -- Sheldon Adelson, the billionaire who controls Las Vegas Sands Corp., held talks with the Singapore government this week as a cash shortage threatens the company's $4 billion casino development there, a person with knowledge of the meetings said.

Las Vegas Sands seeks funding to stave off defaulting on loans while facing ``substantial doubt'' about its ability to survive as a going concern, the casino operator said yesterday. Las Vegas Sands and government officials will publicly pledge to complete the Singapore project, said the person, who declined to be identified because the information isn't public.

Yesterday's filing raised concerns that dwindling cash flow may jeopardize $16 billion of casino developments in Macau, China, and Singapore, where Las Vegas Sands seeks to cater to wealthy Asian gamblers. Restrictions on Chinese who want to visit Macau may damp gambling revenue in the city where the company operates Asia's biggest casino resort.

``If they come up with something to help them get through this, the expansion can still be on course,'' said Billy Ng, a Hong Kong-based analyst at JP Morgan & Chase Co. ``They are dealing with a liquidity crunch that nobody could've foreseen.''

Las Vegas Sands's shares plunged the most since going public in 2004 in New York trading yesterday, after saying it might default on loans arranged by Citigroup Inc., Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc.

Lenders' Requirements

The casino owner, which had $8.8 billion in long-term debt at the end of June, said in a regulatory filing that it probably won't meet lenders' requirements unless it cuts spending on developments, boosts earnings at its Las Vegas Strip casinos and raises more capital.

Las Vegas Sands spokesman Ron Reese declined to comment on any negotiations. The Singapore Tourism Board said it had nothing to add beyond a statement on Oct. 29, when it said it was in talks with Las Vegas Sands to ``facilitate the success'' of the Marina Bay Sands project.

The casino owner is also building the $800 million Sands Bethworks in Bethlehem, Pennsylvania, and a $600 million condominium complex in Las Vegas. Bethlehem's mayor John B. Callahan said today that Las Vegas Sands suspended work on construction of a hotel, conference center and mall to speed up completion of the casino there.

Las Vegas Sands dropped $3.81, or 33 percent, to $7.85 yesterday in New York Stock Exchange composite trading, the biggest decline since its initial share sale in December 2004. The shares have lost 92 percent of their value this year amid concerns that falling casino winnings and the global financial meltdown would leave the company short of cash.

Declining Macau Revenue

Spending declines on the Vegas Strip and restrictions on visas in Macau have stemmed the flow of cash into Las Vegas Sands.

China increased visa restrictions on some mainland residents traveling to Macau, causing casino gambling revenue in the former Portuguese colony to fall 10 percent to 26 billion patacas ($3.26 billion) in the third quarter.

Yesterday's admission came after the 75-year-old Adelson, who holds a stake of more than 64 percent, invested an additional $475 million in September to avoid violating the terms of a loan. He hired an unidentified investment bank to raise more capital with his help.

The casino owner said it doesn't expect to meet a maximum leverage ratio covenant in the fourth quarter. That would trigger defaults that might force it to suspend development projects and ``raise a substantial doubt about the company's ability to continue as a going concern,'' Las Vegas Sands said in the filing.

 

I don't think the 38% factor in such bad news.

AK_Francis      ( Date: 07-Nov-2008 12:30) Posted: affected bank need to cough out more bad debts to cover the bad loan. Just like DBS, 3 qtr profit dips 38%, bad debt attributed one of reasons for profit dropping. leechongpeng      ( Date: 07-Nov-2008 12:26) Posted: Will our banks' shares drop again

 

call bid again? wah the bidding cost will just SPIRAL UP loh? not forgetting piling work and some construction already in place...need to built based on that or remove EVERYTHG and rebuild newer design? :D ...tricky siah :P

kawaiiboi      ( Date: 07-Nov-2008 12:13) Posted: If LAS VEGAS broke.. the government has the right to retake the the land and call for open bid again!.. Then i think other companies will try to bid again

 

Remember read some artical somewhere about the bad fong-shui of IR Sand. Our goverment over confident over the IRs and Tourism but when US in recession, China and many (export oriented countries) will suffer slowing down economy.

May be a good chance to get into property when it dip further in 2009.

 

affected bank need to cough out more bad debts to cover the bad loan.

Just like DBS, 3 qtr profit dips 38%, bad debt attributed one of reasons for

profit dropping.

leechongpeng      ( Date: 07-Nov-2008 12:26) Posted: Will our banks' shares drop again? AK_Francis      ( Date: 07-Nov-2008 12:12) Posted: Ha ha, then the 3 local banks will be very busy to chase after this burger liao

 

Will our banks' shares drop again?

AK_Francis      ( Date: 07-Nov-2008 12:12) Posted: Ha ha, then the 3 local banks will be very busy to chase after this burger liao. nickyng      ( Date: 07-Nov-2008 12:07) Posted: wah....if LAS VEGAS gone bust !! can u imagine the implications locally?? that IR dream gone....no job creations...no economy activities..wow...that is a spiral down hill siah ! :P

 

If LAS VEGAS broke.. the government has the right to retake the the land and call for open bid again!.. Then i think other companies will try to bid again

 

Ha ha, then the 3 local banks will be very busy to chase after this burger liao.

nickyng      ( Date: 07-Nov-2008 12:07) Posted: wah....if LAS VEGAS gone bust !! can u imagine the implications locally?? that IR dream gone....no job creations...no economy activities..wow...that is a spiral down hill siah ! :P

 

wah....if LAS VEGAS gone bust !! can u imagine the implications locally?? that IR dream gone....no job creations...no economy activities..wow...that is a spiral down hill siah ! :P

 

Wah! like that also can ah. Means better avoid local banks at this moment. On the other hand, AK guess gov will not allow these 2 IR to fail ones. 150 b S$, being the backing for the financial sectors.

Andrew      ( Date: 07-Nov-2008 11:43) Posted: I am not surprise if it is a Yes.  Where to get so much Sing dollar ? Not to forget, the developer, the main contractor, the sub-contractors......if bloomberg can report Sands may default.....I think it will.....as all creditor is q-ing up alredi.... Just look at the stock price alredi tell the story......exactly same as AIG....

 

I am not surprise if it is a Yes.  Where to get so much Sing dollar ?

Not to forget, the developer, the main contractor, the sub-contractors......if bloomberg can report Sands may default.....I think it will.....as all creditor is q-ing up alredi....

Just look at the stock price alredi tell the story......exactly same as AIG....

 

Will the local bank like DBS, OCBC or UOB be affected ???