Source : Business Times - 29 Oct 2008
The Singapore Tourism Board (STB) yesterday said it is working closely with Marina Bay Sands to ensure success of its integrated resort (IR) project, amid concerns over the financial position of parent company Las Vegas Sands (LVS).
In a statement, STB’s director of integrated resorts, Margaret Teo, said the agreement with Marina Bay Sands ‘takes into account various eventualities’ and it is ‘premature to speculate at this stage’. ‘STB is monitoring the situation and is aware that the current uncertain economic climate may give rise to concerns,’ Ms Teo said.
The LVS share price went into free fall on rumours the company is having trouble refinancing debt amid poorer outlook on the casino business in the US. On Monday, the stock closed at US$5.80 - down from a high of US$148.76 on Oct 29 last year.
On Friday, it said it was hiring an investment bank to raise capital, with the help of founder and chief executive officer Sheldon Adelson and his family. Mr Adelson pumped US$475 million of his own money into the company last month to prevent a breach of loan covenants.
Bankers and analysts say the Singapore government is not likely to allow the iconic project to fail, even if Marina Bay Sands is forced to default on loans. The three local banks are financing $2.2 billion of the $5.44 billion project, according to sources.
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