Las Vegas Weekly

November 6, 2008 · 11:11 AM

Breaking News: Venetian officials file SEC report admitting financial woes

By Robin Leach

Share prices on Wall Street fell below the $8 mark this morning for the parent company of The Venetian and the Palazzo -- a 25% drop! When the Las Vegas Sands Corp. first went public, the offering price was $29 per share and rose as high as $149. However, in the past few months, the price has plummeted down to $8. Despite a mini-rally that sent them up to $14 last week, they fell again this morning in initial trading to $7.70.

Officials at the Vegas HQ’d company filed a report with the Securities and Exchange Commission in Washington, D.C., that the company may be in default of some loans because of the lowered stock valuation and, if it can’t raise capital, it “threatens our ability to keep operating.”

Venetian and Palazzo Chairman Sheldon Adelson and CEO Bill Weidner said the company doesn’t expect to meet a maximum leverage ratio covenant in the 4th quarter. That would trigger defaults that might force the company to suspend development projects and “raise a substantial doubt about the company’s ability to continue as a going concern.”

Vegas DeLuxe will continue to monitor this developing story.

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