Moody's: Atlantic City likely to default Monday without loan

AP News
Posted: Jul 27, 2016 4:18 PM

ATLANTIC CITY, N.J. (AP) — A Wall Street firm says Atlantic City is likely to default Monday on a debt payment unless the state comes through with a $74 million loan it promised in May.

The loan was part of a temporary agreement reached between New Jersey and the nearly broke city to allow it to get its finances in order by November.

If that doesn't happen, the state is poised to seize control of the city's finances and major decision-making power.

Moody's Investors Service says Atlantic City will likely default on a $3.4 million debt service payment if the state doesn't act.

The firm says that would make it more likely the city would have to file for bankruptcy or try to restructure its debt some other way.