Atlantic City to receive state loan to stave off default

ATLANTIC CITY, N.J. – Atlantic City is about to get a long-awaited state loan to help it stave off default and possibly bankruptcy.

The City Council has called an emergency meeting Thursday to vote to accept the $74 million loan to help the nearly broke city get through the rest of the year.

Moody’s Investors Service warned Wednesday that the city would likely default on a $3.4 million debt service payment on Monday if the loan did not go through before then.

Council President Marty Small says the funds will relieve the short-term pressure on the city as it tries to come up with a fiscal reorganization that would prevent the state from taking over its finances and major decision-making power in November.