Las Vegas Sands (LVS) Smashed On Debt Problems, Bankruptcy Fears

Shares of Las Vegas Sands Corp. (NYSE: LVS) were under heavy pressure today, falling 33%, after warning that it may be in default on its debt, which brings bankruptcy into play.

Las Vegas Sands said it will likely not be in compliance with its debt covenants and may need to raise more capital.

This afternoon, CNBC's David Faber reported that the company is looking to hire a banker to restructure its capital to avoid a bankruptcy.

From the fling, "Based on current estimates, the Company expects it will not be in compliance with its maximum leverage ratio covenant for the quarter ending December 31, 2008 and at subsequent quarterly measurement dates. Non-compliance would result in a default under these agreements and, due to cross-default provisions, would also result in defaults under the Airplane Financings, Convertible Senior Notes and Senior Notes. The occurrence of these defaults would allow all of the lenders to exercise their rights and remedies as defined under the respective agreements, including acceleration of the maturity of the related obligations, which raises substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1 and include a capital raising program."

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