Atlantic City will Receive Loan and Make Debt Repayment on Monday
Atlantic City is finally getting a loan that will help it sail though the end of this year and avoid a default as well as a possible bankruptcy. While it avails the loan, the city will look for ways to help fix its finances. That also ends the recent spat with Governor Chris Christie who was angered by earlier loan negotiations.
The terms of the loan are however quiet stringent and in case the struggling Jersey gambling town is not able to pay back the loan, its assets could be taken over by the state including its water utility and the earlier- Bader Field airport.
In May, the state promised a$74 million loan to Atlantic City and Christie signed the rescue package to save it from a financial collapse. However, according to the deal the city has to formulate a five-year plan to a road to recovery and perk up its finances by November to avert a state takeover.
However, three months down the line from the promise, but the state had not give the loan. Reportedly, the city is likely default on a $3.4 million earlier debt payment that's due Monday. If the loan did not come through until that time, the city could face a likely bankruptcy.
On Thursday, the Atlantic City council called an emergency meeting and decided to accept the loan. It will help the city pay Monday's debt repayment and also allow making payrolls.
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