The TODAY newspaper has raised the prospect of a government bailout for a troubled casino operator which is building its showcase “integrated resort” in Marina Bay.
The Financial Times reported that shares of Las Vegas Sands fell more than 40 per cent after the casino operator warned that it risked defaulting on its debt, raising doubts about its ability to continue operating as a going concern. The Sands is reportedly struggling to meet its debt obligations.
The casino operator said that failure to raise new capital would trigger a series of defaults, raising a “substantial doubt about (its) ability to continue as a going concern”.
In a bit to assure the Singapore Government, Sands chairman and chief executive Sheldon Adelson this week met with the government officials to “personally reaffirm our commitment to the success of Marina Bay Sands”.
Adelson issued a statement, saying: “I am pleased to say that the Singapore Government’s support of our project remains strong.”
Of course the Government’s support remains strong! As a gaming analyst told TODAY: “There is no doubt in my mind the Singapore Government will come in to ensure the project is completed.”
PAP MP Ho Geok Choo was even more frank: “The Government has placed a huge stake of its reputation on this project because we went loud and clear when the decision to have casinos here was made. We obviously attach a lot of importance to seeing it through.”
TODAY reporter Teo Xuanwei wrote that some observers expect it to apply an infusion of case or assume a chunk of the casino operator’s debt, possibly through its investment arms.
Investment arms? Does she mean Temasek or GIC?
You mean there’s a possibility that the Government is going to use our reserves to bail out a casino operator just to save face?
I am strongly opposed to such a move, and even more so if it is done secretly without informing the public (which Temasek and GIC could very well do).