Atlantic City May Default Without State Aid, Moody’s Says
- State lawmakers approved loan as part of rescue package
- Mayor says city will approve once terms are finalized
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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.