This piece first published at Forbes.com: click here for link
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
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.
Continue reading
This piece first published March 16, 2016, Debtwire Municipals
New Jersey risks a rating downgrade and increased budgetary pressure if the state’s Supreme Court upholds an appellate court’s ruling, reinstating cost of living adjustments (COLAs) for the state’s pensioners, said Lisa Kreiling, senior analyst at PNC Capital Advisors.
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.”
MARIA AMANTE 