ZZZ - GMG - VEGAS INC 2011-2014

October 03, 2011

VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more

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IN BUSINESS COURTS FIRED CASINO EXECUTIVE TRIES PRYING INFO FROM LAS VEGAS SANDS, SANDS CHINA By Steve Green senior staff writer With his lawsuit 11 months old, fired Macau casino CEO Steven Jacobs is now trying to pry extensive amounts of information from his former employer, Sands China Ltd., and its parent Las Vegas Sands Corp. Jacobs filed suit in state court in Nevada in October 2010 charging he had been wrongfully denied stock options when he was fired in July 2010 as CEO of Sands China. To understand the significance of his dismissal, consider: Sands China, as a standalone business, is one of the world's largest casino operators. It generated revenue of $1.2 billion in the second quarter alone from its Venetian Macau, Sands Macau and Four Seasons TOURISM ALLEGIANT HAS SECOND THOUGHTS ON MESA ROUTE FLIGHT TIMES By Richard N. Velotta senior staff writer Allegiant Air will fly a route company officials previously said they'd avoid, between Las Vegas and Mesa, Ariz. The Vegas-based airline, a subsidiary of Allegiant Travel Co., will begin service between McCarran International Airport and Phoenix Mesa Gateway Airport Nov. 17 and fly six nonstop round trips a week. The airport was the former home of Williams Air Force Base. The airline will use 150-passenger, twin-engine MD-80 jets on the route. When Allegiant decided to use its business model of flying between small cities and resorts and opened its operation in Mesa, a gateway to Arizona's golf and spa resorts, it opted not to fly between Las Vegas and Mesa because of COURTS BIG NEVADA CONTRACTOR FILES FOR BANKRUPTCY Interstate's filing in U.S. Bankruptcy By Steve Green senior staff writer Interstate Plumbing & Air Conditioning LLC of Las Vegas and associated companies filed for Chapter 7 bankruptcy liquidation a few weeks after laying off most of its workers. In a mid-August announcement, the company said it had laid off 265 of its 335 employees due to the recession and was seeking financial solutions with the help of G2 Capital Advisors. Court for Nevada in Las Vegas listed $17.4 million in assets against liabilities of $40.5 million. Also filing for bankruptcy were affiliated companies Interstate Acquisitions LLC, Interstate California Holdings Corp., Global Mechanical LLC and Interstate Plumbing & Air Conditioning LP. The companies' assets include the heavy competition in the Las Vegas- Phoenix route. Between Southwest Airlines, US Airways and Mesa Airlines, there are 25 daily nonstop round trips between Las Vegas and Phoenix Sky Harbor International Airport. Allegiant partners with 40 Arizona resorts in its vacation packages. Allegiant is introducing the Mesa route with $30 one-way flights, which don't include various fees, including additional costs for booking tickets and transporting baggage. Discounted tickets must be purchased by Oct. 16 for travel between Nov. 17 and Feb. 14. In addition to Las Vegas and Mesa, Allegiant flies to Los Angeles, Fort Lauderdale, Orlando and St. Petersburg, Fla., as resort gateways. Leaving Day Monday Thursday Friday Sunday Las Vegas 2:15 p.m. 2:50 p.m. 3:40 p.m. 3:40 p.m. 7:20 p.m. 7:20 p.m. Day Monday Thursday Friday Sunday Leaving Arizona 1:25 p.m. 2 p.m. 2:50 p.m. 6:30 p.m. 2:50 p.m. 6:30 p.m. Arriving in Arizona 4:25 p.m. 5 p.m. 5:50 p.m. 5:50 p.m. 9:30 p.m. 9:30 p.m. Arriving in Las Vegas 1:35 p.m. 2:10 p.m. 3 p.m. 6:40 p.m. 3 p.m. 6:40 p.m. Macau properties. Further intensifying interest in Jacobs' lawsuit is that it touches on Sands' efforts to distance itself from organized crime elements in Chinese casinos — and it's believed to be responsible for investigations into Las Vegas Sands' compliance with a U.S. law barring bribes to foreign officials as well as shareholder lawsuits. After 11 months of legal wrangling between Jacobs, Sands China and Las Vegas Sands, the state court is nowhere near ruling on the merits of Jacobs' wrongful firing claim, including charges Las Vegas Sands CEO Sheldon Adelson directed him to commit improper acts — or on countercharges that Jacobs was fired for cause and stole massive amounts of sensitive company data. Instead, attorneys are back to square one as they argue over whether Sands China can even be sued in Nevada. A state court judge, Clark County District Court Judge Elizabeth Gonzalez, ruled Sands China is a proper party to the lawsuit, citing its "pervasive contacts'' with Nevada. It's common knowledge Sands China is controlled from Las Vegas by Adelson, but Sands China attorneys insist that as a foreign corporation, it's not subject to Nevada law. They appealed Gonzalez's ruling on jurisdiction to the Nevada Supreme Court, which sided with Sands China in SEE JACOBS PAGE 9 contractors licenses in Nevada, Arizona, California and Utah. Major creditors include Sankaty Advisors LLC in Boston, owed about $17.7 million; and Zions Bank in Salt Lake City, owed $8.5 million. The filing listed scores of trade creditors as well. The filing said Interstate Plumbing & Air Conditioning LLC had revenue of $60.1 million in 2010 and $25.7 million so far this year.

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