Source : Straits Times - 11 Nov 2008
Venture with CapLand if Las Vegas Sands goes bankrupt: Report
THE Singapore Government may form a venture with CapitaLand to take over one of the country’s two integrated resorts if Las Vegas Sands fails to stave off loan defaults, CIMB-GK Research said yesterday.
Las Vegas Sands, the gaming concern that said last week it may default on debt and face bankruptcy, has reiterated its commitment to the US$4 billion (S$6 billion) Singapore venture.
The company has drawn down at least $2 billion from a $5 billion credit facility by several banks for the project.
‘If Las Vegas Sands cannot cough up its share of equity, the Singapore Government is likely to step in,’ Mr Donald Chua, a Singapore-based analyst at CIMB-GK, wrote in a report.
‘A viable option could be a 49:51 joint venture between the Government and CapitaLand, with CapitaLand taking a controlling stake.’
Las Vegas Sands was one of two gaming companies that won the right to build casinos in Singapore after the city state lifted a four-decade ban on them in 2005, to diversify the economy and create jobs.
The company said last week it faces ’substantial doubt’ about its ability to survive and may be short of cash for US$16 billion of projects in Asia.
In an e-mail statement yesterday, it declined to comment on its earnings announcement.
CapitaLand said in an e-mail
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