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Las Vegas Sands Nears Bankruptcy

Chips are down for gaming giant

By Peter Fearon, Newser Staff

Posted Nov 7, 2008 4:11 AM CST

(Newser) – Casino giant Las Vegas Sands is on the verge of bankruptcy, reports the Las Vegas Sun. The company, which owns the Venetian and Palazzo casinos in Las Vegas and has several gambling resorts in development around the world, filed paperwork with the federal government yesterday declaring that the Sands’ ratio of debt to earnings has fallen out of compliance with its lenders’ requirements.

The announcement—usually seen as the first step to declaring bankruptcy—confirms a precarious financial situation that investors have been aware of for some time. The company’s massive debt and ambitious growth plan have made it especially vulnerable to the financial crisis, which is affecting the entire gaming industry. The Sands’ shares have fallen 90% over the last year, and dropped 33% on news of the possible bankruptcy.

The Palazzo in Las Vegas. Owners Las Vegas Sands say earnings are falling, leaving them in danger of defaulting on loan agreements. (AP Photo/Las Vegas News Bureau, Glenn Pinkerton)

The Venetian Macao Resort Hotel in Macau. This southern Chinese city has surpassed the Las Vegas Strip as the world's most lucrative gambling center, but now the casinos are facing a financial crunch. (AP Photo/Kin Cheung)

The Las Vegas strip at night. (PRNewsFoto/BestOfVegas.com)

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OTHER STORIES ON OUR RADAR

SEC • casino • Las Vegas Sands Corp. • Venetian • financial crisis • Palazzo

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Banks to Pay SEC for Financial Crisis Fraud

They're near deal to settle allegations on mortgage-bond deals

CityCenter: Las Vegas' $8.5B Stimulus Bet

Hotel-casino-condo-shopping behemoth brings 12K jobs, optimism to battered state

Russia Bans Gambling as Mega-Casinos Crap Out

Planned mini-Vegases stall in financial crisis

Obama Moves Quickly to Overhaul Finance Rules

Details of plan to emerge by April when prez heads to London summit

Critics Question Toughness of Obama's SEC Pick

Confirmation hearing today for Schapiro

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?