Atlantic City's turnaround team does not propose bankruptcy

Reuters News
Posted: Mar 24, 2015 3:37 PM

NEW YORK (Reuters) - A report by a turnaround team tasked with reviving struggling gaming resort Atlantic City said possible options would be to cut costs, jobs and extend bondholder maturities, but did not foresee bankruptcy as a solution.

"Bankruptcy is not something that we are contemplating," said emergency manager Kevin Lavin on a conference call on Tuesday. "We think that this process can be done without that necessity."

The report proposes to negotiate with stakeholders until the end of June and sees fiscal sustainability at some point after that. It says the city's current projected budget deficit is $101 million and that without significant change, the cumulative deficit will be $393 million over five years.

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(Reporting by Hilary Russ and Megan Davies; Editing by David Gregorio)