Time.com, 7 Nov 2008, Neel Chowdhury
"In a Nov. 5 filing to the Securities and Exchange Commission, Las Vegas Sands revealed its cash was drying up. For the first six months of 2008, according to the filing, the company's earnings were "insufficient to cover fixed charges" by $80.1 million. This gaping shortfall, astonishing for a company that was throwing off more than $600 million in free cash flow annually just three years ago, could trigger defaults on its $8.8 billion in long-term loans. That, in turn, could jeopardize Las Vegas Sands' ability to continue "as a going concern," according to the filing."
"Analysts say the Marina Bay casino is too important for the economic diversification of Singapore, which is overwhelmingly dependent on electronics exports and trans-shipping, for the project to collapse. The Singapore Tourism Board may step in either with an infusion of cash or an agreement to assume a sizable chunk of the troubled casino operator�s debt. "We are working closely and are in dialogue with Marina Bay Sands [Las Vegas Sands' Singapore subsidiary] to facilitate the completion of the project," says Margaret Teo, Assistant CEO of the Singapore Tourism Board. She declined to provide further financial details."
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