Atlantic City appoints lawyers to restructure debt
Atlantic City’s authorities have hired a number of public finance attorneys in an effort to restructure part of the gambling resort’s $240 million (€216.5 million) outstanding bond debt.
Mayor Don Guardian told reporters that New Jersey law firm McManimon, Scotland & Baumann will work to reduce the city's debt load, the majority of which it had to take on in order to pay back casinos that were victorious in property tax appeals.
The appointments come after New Jersey in May agreed to a deal that gives New Jersey until October to establish a recovery plan or face a possible state takeover to help boost its struggling casino market.
Total casino revenue in the hub for the 12 months to December 31, 2015, came in at $2.2 billion, down from $5.2 billion in 2006, partially due to the closure of four of its 12 casinos in 2014.
Guardian has said that Atlantic City will speak to private companies in an effort to save money on certain services, while the city has also asked Atlantic County about sharing services such as senior citizen transportation.
The city has also increased various fees, such as those for parking metres, which could bring in an additional $800,000 this year and $1.6 million in 2017.
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