Macau: AAEC questions LVS financial capacity to bid for gaming licence
Asian American Entertainment Corp Ltd (AAEC) has warned Las Vegas Sands (LVS) could be at risk of bankruptcy if a court case goes against it.
Macau.- The commission overseeing Macau’s casino retender has received a letter from AAEC that questions the financial capacity of Las Vegas Sands to bid for a new gaming concession. TDM TV reports that, according to AAEC, the casino operator could be at risk of bankruptcy if a court decides in AAEC’s favour in a pending court.
AAEC is claiming US$7.5bn from LVS for breach of contract. The two companies had signed a partnership in October 2001 with a view to exploring a potential bid for a Macau concession, however, LVS ultimately partnered with Galaxy Entertainment, with whom it won a licence.
However, LVS has argued that AAEC was the first to break the partnership and trade with rivals, including Hong Kong entrepreneur Lui Che Woo. The dispute is expected to continue in Macau’s appeals courts.
A bidder’s financial capacity to sustain operations and development projects is one of the criteria assessed by Macau’s casino tender commission. Other factors to be evaluated are:
- The company’s proposal to expand tourist markets from foreign countries;
- Its experience in operating casinos or other relevant businesses;
- The benefits of their gaming and non-gaming investments;
- The company’s plans to manage its casino operations;
- Its monitoring and prevention of illegal casino activities recommendations;
- Its commitment to corporate social responsibility activities.
In September, Macau reiterated its aim to have the results of the retender ready in time to issue new licences by the end of the year.
