Townsquare Host Hurley Says Atlantic City Won’t Default Today
Townsquare Media Radio Host Harry Hurley, of WPG Talk Radio 1450 is reporting this morning that Atlantic City will not default today.
The following is a statement from Hurley:
This runs counter to almost every other media report in the run-up to today's deadline
Today is a very important day in Atlantic City. A $ 1.8 million bond payment is due. There has been much reporting about whether or not Atlantic City will make this payment today.Making matters even worse, the City also has to make a $ 7 million payroll payment by this Friday, May 6th. The financial "walls" continue to close-in on Atlantic City.It is important to note that no New Jersey city has defaulted on a debt payment since The Great Depression.Atlantic City Mayor Don Guardian will officially reveal this morning at 11:00 a.m., whether or not the City will make the $ 1.8 million bond payment.In a "Hurley in the Morning" breaking news exclusive, I am forecasting that Atlantic City will make today's $ 1.8 million bond payment.Mayor Guardian has readily admitted that Atlantic City routinely only has between $ 1-2 million in cash on hand at any time. That makes today's bond payment very difficult ... amazing, considering that Atlantic City had a ratable base of more than $ 21 billion just several years ago. The city is now worth about $ 7 billion in tax ratables.Atlantic City is presently about $ 550 million in debt, and, the city is less than 4 weeks away from running out of money.There appears to be some movement at the state legislature level. The Speaker Vincent Prieto Atlantic City bailout plan still does not have the 41 votes for passage. Governor Chris Christie and Senate President Steve Sweeney remained aligned in support of Sweeney's Atlantic City takeover plan.Pressure is mounting for Prieto to compromise. Prieto is presently receiving pressure that even his fellow Democrats may form a coup against him, and, are quietly threatening to take him out as Speaker if he doesn't compromise. If he can't get 41 votes for his bill, relentless pressure is being brought for Prieto to post the Sweeney bill in the General Assembly.Governor Christie has previously confirmed to me that should Atlantic City default, it would have a direct effect on the state's credit rating, and, a significant ripple effect on at least 10 other New Jersey cities who are dealing with challenging financial challenges at this time.Atlantic City's has a current "beyond" junk credit rating of Caa3 negative from Moody's Investor Services.Today's $ 1.8 million bond payment is for (two) Year 2012 bonds. Some are secured, so interest payments are also on the line today.Based on Atlantic City's current financial position, it's almost miraculous, however, I am forecasting that they will make the $ 1.8 million bond payment today.