LAS VEGAS MARINA BAY SANDS INTEGRATED RESORT

Lately there was a news that Las Vegas Sands Corp saying it may default on debt and face bankruptcy. The company, which had USD 8.8 billion in long-term debt at the end of June, said in a regulatory filing few days ago that it probably won't meet the requirements of loans arranged by Citigroup Inc., Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. unless it cuts spending on developments, boosts earnings at its Las Vegas Strip casinos and raises more capital.

This is quite a huge blow for this company because the on going project which is under construction in Marina Bay Sands IR which is located in Singapore; still the project have about 2 years to complete it.

This project which was awarded to Las Vegas Sands Corp by the government of Singapore to build and to managed an anchor casino and resort complex on Marina Bay in Singapore.

The ongoing economic downturn has hit the gambling industry, Las Vegas Sands casino operator, a full-blown financial hurricane may be brewing, pointing out that in a November 5 filing to the Securities and Exchange Commission, the company had revealed its cash was drying up. For the first six months of 2008, according to the filing, the casino's earnings were "insufficient to cover fixed charges" by USD 80.1 million.

This gaping shortfall, astonishing for a company that was throwing off more than USD 600 million in free cash flow annually just three years ago, could trigger defaults on its USD 8.8 billion in long-term loans.

Singapore in several years ago, had decided to boost its economy by becoming a tourist destination. The government of the conservative little city-state had then taken the controversial step of legalising gambling.

The casino is too important for the economic diversification of Singapore, which is overwhelmingly dependent on electronics exports and trans-shipping, for it to collapse.

Recently the owner of Las Vegas Sands Corp - 75 year old Adelson said "In light of recent turmoil in the global markets, I felt the need to personally reaffirm our commitment to the success of Marina Bay Sands." He personally ensure the "success" of the Singapore casino, in a statement released on November 7.

No doubt that Las Vegas Sands Corp owner give their commitment to the success of Marina Bays Sands, still whether the government of Singapore will continue to support Las Vegas Sands Corp to finish up their project on time would be another matter. It would depend on how Las Vegas Sands Corp will meet with their USD 8.8 billion long term-debts, whether they able to meet with their deadline when the time arrive.

What would the impacts on Genting International P.L.C, Resort World Berhad and Genting Berhad ? This will be a question that we need to find out if Las Vegas Sands Corp fails to complete it works on Marina Bay Sands IR.