Dubai World's Debt Problems Unnerve Investors
On the upside
Sea Island transferred ownership of its 3,000 acre golf course community Frederica to Wells Fargo (NYSE: WFC), easing Sea Island's debt problems. Shares of Synovus Financial (NYSE: SNV), which holds $400 million in Sea Island's debt, rose.
On the downside
Compton Petroleum (NYSE: CMZ) filed a shelf prospectus.
The accounting fraud trial for those associated with overinflating profits at Satyam Computer (NYSE: SAT) will begin next month.
DryShips (Nasdaq: DRYS) closed its offering of $460 million in senior convertible notes.
Las Vegas Sands (NYSE: LVS) announced that it secured $1.75 billion in financing for its resort along the Cotai Strip in Macau.
MGM Mirage (NYSE: MGM) reassured investors that Dubai World's debt problems will not affect development of their $8.5 billion CityCenter project along the Las Vegas Strip.
In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 1 on the NYSE and by more than 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 14 points to 577.
