Atlantic City Has $12.8M Debt Due Tuesday; Lenders Wary

Just how wary lenders are of Atlantic City’s credit is evident in their recent demands as the city tries to refinance $12.8 million in debt due Tuesday.

Three lenders expressed interest in making the loan, but one wanted to charge 12 percent interest. Another was willing to lend at a lower rate but wanted a state guarantee, which the state rejected, Mayor Don Guardian said Saturday.

Talks continued with a third prospective lender, and a decision is expected Monday, Guardian said, adding: “We are prepared to make the payment regardless.”

The financial turmoil in Atlantic City, half of whose gambling revenue has disappeared since 2006, has intensified in the last year, as four of 12 casinos have closed, and 8,000 people have lost their jobs.

Read more at http://www.philly.com/philly/news/new_jersey/20150202_Atlantic_City_must_refi__12_8M_debt_due_Tuesday__lenders_are_wary.html#ko1yGKWcfBpViIB0.99

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