Hostile New Jersey Politics Threaten The Boardwalk Empire And Beyond

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Political tension in New Jersey has reached a boiling point as lawmakers fight over the future of Atlantic City. But residents of, and investors in, the cash-strapped city won’t be the only victims of its insolvency.

Barring a last-minute legislative solution, Atlantic City is set to run out of cash and shut down for a month-long stretch starting next week. By April 15, it could be $10 million in the hole. Continue reading

Atlantic City default possible on 1 April; Assured will stand by policy

This piece first published March 16, 2016, Debtwire Municipals
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Without a cash injection, Atlantic City could default on a USD 664,688 debt service payment due 1 April, multiple sources tell Debtwire Municipals.

The debt is insured by Assured Guaranty and issued as USD 5.45m Series 2012 pension refunding bonds. Debt service payments are due on 1 April and 1 October and the debt is backed by a general obligation pledge.
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Atlantic City will prioritize services over debt payments as insolvency looms, mayor says

This piece first published March 10, 2016, Debtwire Municipals

Atlantic City will prioritize funding government services above debt service payments because the city’s cash is expected to dry up on 1 April, Mayor Don Guardian said in an interview with Debtwire Municipals.

“Sorry, Wall Street,” Guardian said. “I need police, fire, and public works. (We will) run out of cash…we’ll stall pension, health benefits (to the state)…You’ll feel the pain with us.”

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Scranton concludes union mediation, preps for first new debt since parking default

This piece first published February 29, 2016, Debtwire Municipals

The City of Scranton is closer to issuing its first new bond debt since the default of Scranton Parking Authority bonds in 2012, three sources familiar tell Debtwire Municipals.

The city and unions reached a tentative agreement over a judgment owed to city workers for back pay last week, which paves the way for the city to issue about USD 35m in debt to repay that judgment.

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