VIDEO: Atlantic City May Face Potential State Takeover
ATLANTIC CITY - A looming deadline, may leave Atlantic City with a potential state takeover. A wall street firm says, the city is likely to default on a debt payment on Monday unless the state comes through with a $74 million dollar loan it promised back in May. The loan was part of a temporary agreement reached between the state and the nearly broke shore resort to allow it to get its finances in order by November. If that doesn't happen, the state can seize control of the city's finances. Investors say Atlantic City will likely default on a $3.4 million debt service payment on Friday if the state doesn't act. The firm says that would make it more likely the city would have to file for bankruptcy, or try to restructure its debt some other way.