Authorities have hired a group of financial lawyers in an effort to restructure Atlantic City’s debt problem.
It’s no secret that Atlantic City has been struggling with debt for years. Casino openings in a number of nearby states have been devastating to the city’s economy. Four of Atlantic City’s 12 casinos were shut down in the past two years, taking over 10,000 jobs with them.
US gambling news broke last week that a group of public financial lawyers will be tasked with reducing and restructuring Atlantic City’s debt of over $240 million. This news comes after a May deal was struck to give the city until October to come up with a recovery plan. Failure to do so could result in a state takeover.
Could bankruptcy hurt or help Atlantic City?
Atlantic City’s debt has been an ongoing issue in New Jersey. At a public meeting last Tuesday, residents of the city voiced their concerns over the city filing for bankruptcy, questioning whether doing so would automatically result in a state takeover.
“Bankruptcy scares investors away. It chills financial markets. Bankruptcy doesn’t solve our problems,” said Councilman Kaleem Shabazz. “Atlantic City is a functional, contributing part of the economic engine of the state, so we have to work together.”
Atlantic City Mayor Don Guardian told reporters that he plans to take bid from private companies in an effort to save money on the state’s public services such as trash and recycling. The city has already risen fees on parking meters, a move expected to bring in $1.6 million in 2017.
The lawyers will certainly have their hands full in dealing with Atlantic City’s debt. The next few years seem pivotal in determining whether Atlantic City can regain the high status it once had, or fade into obscurity.
What do you think? Will the lawyers be able to reduce Atlantic City’s debt? Leave your comments below, and make sure to check out GamingZion’s online casinos in the US to gamble anywhere in the country!