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Thursday, November 06, 2008

Las Vegas Sands may Default

by Calculated Risk on 11/06/2008 12:50:00 PM

When it comes to overbuilt hotel and commercial space ... and high rise condos too ... Las Vegas is the poster child of bubble credit excess!

From Bloomberg: Las Vegas Sands Plunges on Defaults, Bankruptcy Risk

Las Vegas Sands ... said in a regulatory filing today that it ... doesn't expect to meet a maximum leverage ratio covenant in the fourth 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.''
Las Vegas Strip casino gambling revenue slid 6.7 percent this year through August, on track for its biggest annual decline on record, as airlines cut back capacity and consumers, battling declining home values, job losses and the worst financial crisis since the Great Depression, spent less.