Las Vegas Sands loses another senior executive, eyes debt buy-back (Sheldon Adelson plays poker to boost LVS share price)
24th March 2009
By Clare Baldwin SAN FRANCISCO, March 24 (Reuters) - Las Vegas Sands Corp's construction chief has resigned for personal reasons, the company said, the latest senior executive to leave as the company struggles with dwindling gaming and mounting debt obligations.
Sands also said on Tuesday it was in talks with Goldman Sachs, Citigroup and Lehman Brothers Inc to amend an existing credit agreement with lenders, so that the Sands could buy back up to $800 million in outstanding term loans. "If we decide to buy back the loans, it will be to increase our potential flexibility. Chief Executive Officer Sheldon Adelson (playing poker) hasn't made a decision to do it yet," spokesman Ron Reese said.
The resignation of Executive Vice President Bradley Stone had been expected following other high-profile departures from Sands, which operates the Palazzo and Venetian resorts on the Las Vegas Strip and two casinos in the Chinese gambling enclave of Macau.
On March 9, Sands said President and Director William Weidner had left the company. It gave no explanation but said in a filing that an internal committee will address "outstanding differences" between billionaire Adelson and other senior management members. But Reese said Stone's resignation was not related to Weidner's. Reese did not elaborate.
The effective date for Stone's departure had not been decided. Stone, who is also president of global operations and construction, was not available for comment. The company, controlled by Adelson, recorded a $168.32 million loss in 2008 and had come close to violating loan agreements as gambling slowed in Vegas and elsewhere and credit dried up globally.
After Weidner left, director James Purcell resigned from the casino operator's board days later, citing a disagreement over the way in which Weidner had been dismissed.
After Purcell resigned, analysts speculated that Stone and Senior Vice President Robert Goldstein would follow. Stone and Goldstein had been hired along with Weidner in 1995 and had worked with him for years before that. "The company doesn't expect any additional vacancies, resignations, or departures," Reese said. "Weidner and Stone's departure will not affect our ability to continue to retain top executives." Sands shares, which traded near $84 a year ago, have lost 96 percent of their value in the past 12 months.
LVS gained 16 percent on Tuesday to $3.08 ahead of the buyback announcement.
24th March 2009
By Clare Baldwin SAN FRANCISCO, March 24 (Reuters) - Las Vegas Sands Corp's construction chief has resigned for personal reasons, the company said, the latest senior executive to leave as the company struggles with dwindling gaming and mounting debt obligations.
Sands also said on Tuesday it was in talks with Goldman Sachs, Citigroup and Lehman Brothers Inc to amend an existing credit agreement with lenders, so that the Sands could buy back up to $800 million in outstanding term loans. "If we decide to buy back the loans, it will be to increase our potential flexibility. Chief Executive Officer Sheldon Adelson (playing poker) hasn't made a decision to do it yet," spokesman Ron Reese said.
The resignation of Executive Vice President Bradley Stone had been expected following other high-profile departures from Sands, which operates the Palazzo and Venetian resorts on the Las Vegas Strip and two casinos in the Chinese gambling enclave of Macau.
On March 9, Sands said President and Director William Weidner had left the company. It gave no explanation but said in a filing that an internal committee will address "outstanding differences" between billionaire Adelson and other senior management members. But Reese said Stone's resignation was not related to Weidner's. Reese did not elaborate.
The effective date for Stone's departure had not been decided. Stone, who is also president of global operations and construction, was not available for comment. The company, controlled by Adelson, recorded a $168.32 million loss in 2008 and had come close to violating loan agreements as gambling slowed in Vegas and elsewhere and credit dried up globally.
After Weidner left, director James Purcell resigned from the casino operator's board days later, citing a disagreement over the way in which Weidner had been dismissed.
After Purcell resigned, analysts speculated that Stone and Senior Vice President Robert Goldstein would follow. Stone and Goldstein had been hired along with Weidner in 1995 and had worked with him for years before that. "The company doesn't expect any additional vacancies, resignations, or departures," Reese said. "Weidner and Stone's departure will not affect our ability to continue to retain top executives." Sands shares, which traded near $84 a year ago, have lost 96 percent of their value in the past 12 months.
LVS gained 16 percent on Tuesday to $3.08 ahead of the buyback announcement.
