Atlantic City, New Jersey’s gambling hub, will
make its $3.4 million debt service payment due Aug. 1, Mayor Don
Guardian said on Thursday amid concerns over whether the
cash-strapped city would default.
In legislation signed by Governor Chris Christie in May, the
state committed to helping the city by providing a bridge loan
while local officials devise a financial recovery plan by
November, or else face state takeover.
But that loan still has not been finalized, leading to fears
that the city would not be able to make its August payment on
general obligation bonds issued in 2011 and 2012.
Moody’s Investors Service warned on Wednesday that without
the loan, “a default would likely set off a series of mi…
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