Atlantic City makes $1.8M bond payment to avoid default

The city of Atlantic City, N.J., yesterday made a $1.8 million debt payment, averting default in the short term.

Mayor Don Guardian warned the Jersey Shore resort town still faces serious trouble.

“Financially we’re running on fumes,” he said at a news conference. “We really are teetering on the edge.”

A New Jersey municipality has not defaulted in more than 75 years.

According to the mayor, the town has enough cash to cover payroll and other expenses through June. It's halted new purchases and hires.

It's next bond payment of $1.5 million is due June 1.

Two competing rescue packages for Atlantic City are stalled with the state legislature.

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