Atlantic City Financial Rescue Plan Signed by Governor Christie
- City officials have five months to devise a plan for stability
- Credit-rating companies want to see more certainty on plans
New Jersey Governor Chris Christie signed two bills that will pull Atlantic City from the brink of bankruptcy and give the troubled gambling hub about five months to right its finances -- a task that if unmet would result in an unprecedented state takeover.
The measures will infuse the resort town with enough cash to pay bills and workers through October. Officials have until about then to craft a five-year plan to restore fiscal stability for a community where the tax base has tumbled by more than two thirds since 2010 as gaming competition increased in nearby states. If they fail, the city would fall under the control of the state, which could sell its assets and void or change labor contracts through expansive powers awarded by the legislation.