Atlantic City is likely to default on $3.4 million of debt payments on Aug. 1 without an agreement with New Jersey on a $74 million bridge loan or other state action, according to Moody’s Investors Service.
Although state lawmakers had approved a loan as part of a rescue package in May for the distressed gaming hub, the terms are still being worked out between the state and city. Mayor Don Guardian told residents in a meeting Tuesday evening that city council would approve the agreement when it’s reached, according to a presentation on the city’s website.
“Absent receipt of state support, we believe a default would likely set off a series of missed debt payments and revive the prospect of the city filing for bankruptcy” or a restructuring, Moody’s said in a statement Wednesday. – READ MORE