Nov. 7 (Bloomberg) -- Sheldon Adelson, the billionaire who controls Las Vegas Sands Corp., held talks with the Singapore government this week as a cash shortage threatens the company's $4 billion casino development there, a person with knowledge of the meetings said.

Las Vegas Sands seeks funding to stave off defaulting on loans while facing ``substantial doubt'' about its ability to survive as a going concern, the casino operator said yesterday. Las Vegas Sands and government officials will publicly pledge to complete the Singapore project, said the person, who declined to be identified because the information isn't public.

Yesterday's filing raised concerns that dwindling cash flow may jeopardize $16 billion of casino developments in Macau, China, and Singapore, where Las Vegas Sands seeks to cater to wealthy Asian gamblers. Restrictions on Chinese who want to visit Macau may damp gambling revenue in the city where the company operates Asia's biggest casino resort.

``If they come up with something to help them get through this, the expansion can still be on course,'' said Billy Ng, a Hong Kong-based analyst at JP Morgan & Chase Co. ``They are dealing with a liquidity crunch that nobody could've foreseen.''

Las Vegas Sands's shares plunged the most since going public in 2004 in New York trading yesterday, after saying it might default on loans arranged by Citigroup Inc., Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc.

Lenders' Requirements

The casino owner, which had $8.8 billion in long-term debt at the end of June, said in a regulatory filing that it probably won't meet lenders' requirements unless it cuts spending on developments, boosts earnings at its Las Vegas Strip casinos and raises more capital.

Las Vegas Sands spokesman Ron Reese declined to comment on any negotiations. The Singapore Tourism Board said it had nothing to add beyond a statement on Oct. 29, when it said it was in talks with Las Vegas Sands to ``facilitate the success'' of the Marina Bay Sands project.

The casino owner is also building the $800 million Sands Bethworks in Bethlehem, Pennsylvania, and a $600 million condominium complex in Las Vegas. Bethlehem's mayor John B. Callahan said today that Las Vegas Sands suspended work on construction of a hotel, conference center and mall to speed up completion of the casino there.

Las Vegas Sands dropped $3.81, or 33 percent, to $7.85 yesterday in New York Stock Exchange composite trading, the biggest decline since its initial share sale in December 2004. The shares have lost 92 percent of their value this year amid concerns that falling casino winnings and the global financial meltdown would leave the company short of cash.

Declining Macau Revenue

Spending declines on the Vegas Strip and restrictions on visas in Macau have stemmed the flow of cash into Las Vegas Sands.

China increased visa restrictions on some mainland residents traveling to Macau, causing casino gambling revenue in the former Portuguese colony to fall 10 percent to 26 billion patacas ($3.26 billion) in the third quarter.

Yesterday's admission came after the 75-year-old Adelson, who holds a stake of more than 64 percent, invested an additional $475 million in September to avoid violating the terms of a loan. He hired an unidentified investment bank to raise more capital with his help.

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,'' Las Vegas Sands said in the filing.

To contact the reporters on this story: Beth Jinks in New York at bjinks1@bloomberg.net; Kelvin Wong in Hong Kong at kwong40@bloomberg.net

Last Updated: November 6, 2008 22:04 EST