One of the few silver linings of the current Wall Street financial debacle: thanks to reader John Dickerson for pointing me to news about Sheldon Adelson’s possibly imminent corporate bankruptcy. It seems business has been bad for the gambling industry, dependent as it is on gambler’s discretionary income, which there is very little of these days:
Las Vegas Sands Corp., billionaire Sheldon Adelson’s casino company, fell the most in New York trading since going public after saying it may default on debt and face bankruptcy.
The casino owner, which had $8.8 billion in long-term debt at the end of June, said in a regulatory filing today that it probably won’t meet the requirements of loans arranged by [various banks]
Here’s the company’s own chilling statement:
The casino owner said it doesn’t expect to meet a maximum leverage ratio covenant in the fourth quarter. That would trigger defaults that might force it to suspend development projects and “raise a substantial doubt about the company’s ability to continue as a going concern.”
Adelson spent $475 million of his own personal fortune to avoid violating terms of bank loans as his stock declined 90% through September. October hasn’t been much kinder.
The company’s troubles may prevent Asian gambling capitals from being graced with Adelson resorts:
The reversal of fortune is a black eye for the 75-year-old Adelson, who was once America’s third-richest man on the strength of his Las Vegas Sands holdings. The Las Vegas-based company’s dwindling cash flow is threatening $16 billion worth of developments in Macau, China, and Singapore…
The Bloomberg story of course neglects to mention Adelson’s considerable clout within the right-wing political world, both in the U.S. and Israel. He is Taglit-Birthright’s only major funder. Plus, he owns the farthest-right Israeli tabloid daily, Yisrael HaYom. He also funds the pro-Likud Shalem Center and is Bibi Netanyahu’s chief donor and supporter. He is also a major (perhaps THE major) funder of the Republican Jewish Coalition. He was the founder of Freedom’s Watch, a neocon group whose mission was to help John McCain win the 2008 election.
Without Adelson’s largess, the Jewish right will be, if not voiceless, at least considerably quieter. Netanyahu specifically would expect Adelson to step to the plate at this critical juncture with a national election campaign due in February. Without him, the Likud leader will be hard-pressed to replace his financial bounty.
This could be good news for Tzipi Livni, who may have to face a little bit less mud slung at her from the right without Adelson’s intervention.
I can’t say any liberal Jews are going to be crying in their Manishewitz cups over Adelson’s financial problems. In fact, it couldn’t have happened to a more deserving fellow.
you should change the name of your blog to the jewish schadenfreude blog.
Wishing ill on another Jew. Real Tikun Olam there.
Well, yes, we do enjoy the suffering of right wing Jews who amass enormous fortunes exploiting the vices & foibles of their fellow human beings, & then plowing the proceeds into the most vicious pro-Israel propaganda activities.
@AD: I don’t base my judgments of people on their Jewishness or non-Jewishness. I owe Sheldon Adelson nothing simply because he is a Jew. If he were a mensch & decent human being I might feel differently. But he is an embarrassment to me as a Jew.
And I’m not “wishing ill” on him. He brought the ill on himself by overleveraging his business. Typical of his personal, political and business hubris. I’m merely standing back and watching him get his comeuppance.
Call me naive, but how does a billionaire go bankrupt? Surely he has a couple of mil under his mattress for a rainy day. When I see him in line at the soup kitchen I might believe it.
“Call me naive, but how does a billionaire go bankrupt? Surely he has a couple of mil under his mattress for a rainy day. When I see him in line at the soup kitchen I might believe it.”
Good point, although if he’s a real miser, he might go to soup kitchens anyway. He won’t be getting his hands dirty raising his own food in a vegetable garden.
Zhu Bajie
Robin,
You show an incredible lack of understanding about the super-wealthy. Do you think a few million under the matress for a rainy day will satisfy a man like Adelson?
This is a man who uses his maga-wealth to bankroll ethnic cleansing. Wealth isn’t about money for him – it’s about power.
Zhu Bajie has a Chinese name but no understanding of the Chinese concept of “creative bankruptcy”.
Please remember that when your company goes bankrupt, they don’t come and take away your personal fortune!!!
If it weren’t for the following gem…
“Adelson spent $475 million of his own personal fortune to avoid violating terms of bank loans as his stock declined 90% through September. ”
… which makes me feel warm and fuzzy all over, I would be betting that Adelson found a way to divert a lot of the financing for his investments in Macao and Singapore to his personal bank account, after which he could declare bankruptcy of the company, which at that point would be nothing more than a bloodless husk.
PM
Macau just got a little bit cleaner.