This piece first published May 3, 2016, Debtwire Municipals
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Bondholders for Atlantic City could allow the city access to a USD 18m capital fund to pay debt service due 1 June, said two city bondholders and a New Jersey-based municipal bond counsel.
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.
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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.”
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.
This piece first published February 25, 2016, Debtwire Municipals
The State of New Jersey has many solutions available for Atlantic City’s financial problems, including a short-term state loan or a state backstop to new debt, according to a memo from the Office of Legislative Services (OLS) seen by Debtwire Municipals.
This piece first published February 4, 2016, Debtwire Municipals
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Targeting bondholders and bankruptcy are not sensible solutions for Atlantic City, former Emergency Manager Kevin Lavin said in an interview with Debtwire Municipals.
Lavin served for a year as Atlantic City’s emergency manager and left the position last month to begin at Ankura Consulting Group, a business advisory and expert services firm. He left the door open to further work with municipalities, a sector that has a “very big need,” he said.
This piece first published December 4, 2015, Debtwire Municipals
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Atlantic County Superior Court Judge Julio L. Mendez granted a temporary restraining order today on behalf of Atlantic City preventing The Borgata Hotel and Casino from taking action to collect upon a 2014 USD 88m tax settlement.
Michael Stinson, Atlantic City’s finance director, said in an interview with Debtwire Municipals that the city has about USD 40m in cash on hand on 3 December. It honored a debt payment of USD 2.7m and will honor a payment of about USD 10m on 15 December, he said.
This piece first published September 29, 2015, Debtwire Municipals
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The solution lawmakers reach concerning the Pennsylvania budget impasse and pension trouble will have far more impact on the market than the stalemate itself, said Charles W. Grande, executive director and head of municipal credit research at UBS Global Asset Management.
Market participants have taken a wait-and-see approach to Pennsylvania’s budget impasse and pension problems as they await a political solution that may solve both, Grande said.
MARIA AMANTE 