Nov. 7 (Bloomberg) -- Sheldon Adelson, the billionaire who controls Las Vegas Sands Corp., is in talks with Singapore's government and banks in Hong Kong and Macau as a cash shortage threatens $16 billion of casino developments in Asia, people with knowledge with the negotiations said.

Adelson and Singapore government officials met this week, and pledged to complete the $4 billion project in the city-state, the company said today in a statement. Hong Kong and Macau bankers are also discussing financing for Las Vegas Sands' Macau projects, said two people involved in the transaction.

Las Vegas Sands is seeking funding to stave off defaulting on loans while facing ``substantial doubt'' about its ability to survive, it said yesterday. Casino revenue in Macau, where the company earns about two-thirds of its sales, fell in the second and third quarters for the first time in at least three years.

``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 JPMorgan & Chase Co. ``They are dealing with a liquidity crunch that nobody could've foreseen.''

Las Vegas Sands fell 82 cents, or 10 percent, to $7.03 at 4:15 p.m. in New York Stock Exchange composite trading. It plummeted 33 percent yesterday after saying it might default on loans arranged by Citigroup Inc., Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. That's the biggest drop since the casino owner went public in 2004 and extended this year's slide to 92 percent through yesterday.

Las Vegas Sands, 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 some lenders' requirements unless it cuts spending on developments, boosts earnings at its Las Vegas Strip casinos and raises more capital.

Ron Reese, a Las Vegas Sands spokesman, declined to comment on any negotiations.

Macau Projects

Las Vegas Sands may have to delay or suspend its Macau projects ``if the company is not able to obtain the requisite financing or the terms are not as favorable as it anticipates,'' it said in yesterday's filing.

The Macau project funding, originally at more than $5 billion, may be cut because of the exclusion of a proposed $3.3 billion refinancing of loans signed in 2007, people involved in the deal said. The arrangement for new funding was originally scheduled for completion in late September or early October.

Lenders have also suggested that Las Vegas Sands sell shares or convertible bonds, the people said.

DBS Group Holdings Ltd., one of eight banks hired to arrange a S$5 billion ($3.4 billion) loan for Las Vegas Sands' Singapore casino, said it sees ``no indication of default'' on the debt.

Income Shortfall

Pretax income for Las Vegas Sands in the first half was $80.1 million less than needed to cover fixed charges including interest expenses, Las Vegas Sands said in yesterday's filing. The company had a shortfall of $80.7 million at the end of last year. Pretax income was 1.2 times the charges at the end of June 2007.

Earnings may be hurt by Chinese government restrictions on visits by citizens to Macau, where Las Vegas Sands operates the Venetian Macao, Asia's biggest casino resort. Macau, a former Portuguese colony, is a semi-autonomous city and the only place in China where casino gambling is legal.

Macau's casino gambling revenue fell to 26 billion patacas ($3.28 billion) in the third quarter from 28.9 billion patacas in the second.

Hotel Work Suspended

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

Spending declines on the Las Vegas Strip have also reduced Las Vegas Sands' cash flow. Adelson, 75, 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 help raise more capital and said he would participate in the financing.

The casino operator 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 7, 2008 16:51 EST