Published November 7, 2008

Las Vegas Sands in peril

Ability to continue as going concern in doubt, says auditor

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(NEW YORK) Shares of Las Vegas Sands Corp fell 29 per cent yesterday after the casino operator's auditor said in a regulatory filing that there are doubts about the company's ability to continue as a going concern.

Based on current estimates, Las Vegas Sands expects it will not be in compliance with its maximum leverage ratio covenant for the quarter ending Dec 31, 2008 and at subsequent quarters, accounting firm PricewaterhouseCoopers LLP said in the filing. The auditor said that non-compliance would result in defaults which raises substantial doubt about the company's ability to continue as a going concern.

The company said in a filing that it is working with a financial adviser on a capital-raising programme but that no assurances can be given that the programme will be successful. Sagging US consumer confidence and spending power has hurt business in Las Vegas, where Sands operates the Palazzo and Venetian resorts, among others. Sands is also building almost US$17 billion worth of resorts in Singapore, Macau and Bethlehem in Pennsylvania.

Last month, Sands said Sheldon Adelson, its chief executive and principal stockholder, and his family intend to take part in the capital raising. Sands also said Mr Adelson and his family recently completed an investment in the company of US$475 million in convertible senior notes.

Shares of Las Vegas Sands fell US$3.39 to US$8.27 yesterday morning. -- Reuters