Las Vegas Sands said up to 11,000 Macau workers to lose jobs | Yogonet International
After resort projects halted

Las Vegas Sands said up to 11,000 Macau workers to lose jobs

2008-11-12
Macau
Reading time 1:22 min

About 2,000 of the construction workers are from Macau, and the remainder are from Hong Kong, mainland China and other countries, said Stephen Weaver, Sands’ president for Asia,

The company would give preference to Macau workers and pay them as it assessed whether they could be relocated to other Sands’ projects, though they would likely lose their jobs, Weaver said.

"Regrettably there will be people from Macau in the construction areas that we cannot continue to employee," Weaver told reporters at the company’s Venetian resort in Macau. On Monday, Sands said it was suspending several projects, in Macau and elsewhere, and had agreements to raise us$ 2.14 billion in new capital.

The announcement, amid worse-than-expected results for the third quarter, came after Sands said last week it was in danger of breaching lending conditions December 31 and defaulting on us$ 5.2 billion in credit facilities secured by its Las Vegas operations.

Macau has overtaken the Las Vegas Strip as the world’s biggest gambling center, and American companies have been investing heavily in the former Portuguese colony on China’s southern coast.

But Sands’ construction on casino projects in Macau, Singapore, Pennsylvania and Las Vegas has put the company in a financing squeeze as falling revenue from gamblers and the credit crisis made it difficult to meet its debt obligations.

The company said it would temporarily shut down two sites along Macau’s Cotai Strip, including a Shangri-La/Traders hotel tower, a Sheraton hotel tower and three casinos. The Macau sites have cost us$ 1.16 billion so far, and represent a part of the company’s us$ 13 billion master plan to develop Cotai.

Sands is trying to arrange between us$ 1.5 billion and us$ 2 billion in financing to continue the projects, but Weaver said it’s not clear how long that will take or when construction might resume. He said he’s confident the company will eventually go back to building the projects. "We’ve got $1.2 billion sunk in to the ground, we’re not going to walk away from it," he said. "I think there’s no possibility that it’s never going to start again."

Leave your comment:
Subscribe to our newsletter
Enter your email to receive the latest news