Atlantic City to Hold Emergency Bankruptcy Meeting

Facing a deficit of over $33 million and at risk of running out of money for city services by April, Atlantic City Mayor Don Guardian has called an emergency city council meeting to discuss the possibility of the city claiming bankruptcy.

The meeting, which will be held at 4pm today at City Hall, comes as national credit agencies warn that the city is coming close to defaulting on general obligation bonds.

Standard & Poor’s and Moody's have downgraded the city’s debt rating into junk territory, to CCC- from B saying that default is “inevitable.”

The mayor announced the meeting last week after Gov.Christie pocket-vetoed bills intended to rescue the city's finances, saying Atlantic City hadn't dealt with it's excessive spending.

“The time is now because the State has failed to deliver on their promises,” Guardian said in a statement. “We are still open to working with the governor and senate president to resolve this issue, but without their financial support, we are left with no more options. We will be exploring bankruptcy.”

According to the Press of Atlantic City, "even if the city decides to file for Chapter 9 bankruptcy, the state’s Local Finance Board would have the final say on whether the city can do so. That appears unlikely, as lawmakers including Senate President Stephen Sweeney are proposing a state takeover of the city’s finances.