Christie: ‘No Chance’ Atlantic City Will Get Extension to Fix City’s Finances

ATLANTIC CITY, NJ - AUGUST 29: An elderly woman plays slot machines in a casino on the Atlantic City Boardwalk on August 29 in Atlantic City, New Jersey. After new casinos opened in neighboring states, four of the city's top casinos closed in 2014, laying-off some 8,000 workers. The closures brought Atlantic City's unemployment rate to more than 11 percent, double the national average. The mass unemployment has produced the highest foreclosure rate of any metropolitan U.S. area, with 1 out of 113 homes now in foreclosure in Atlantic County. (Photo by John Moore/Getty Images)

Christie said that Atlantic City may go bankrupt.

FAIR LAWN – Governor Chris Christie told attendees at a Bergen County education forum that he would let Atlantic City go bankrupt before he would consider negotiating a new loan deal with the beleaguered seaside gambling town. The statement comes after a long and difficult battle between the city and state as lawmakers scramble to find a solution that will keep the city from defaulting.

In May, a $74 million loan was agreed to between the state and Atlantic City in order to allow the city to pay for payroll and other necessary services. According to Christie, however, the city is now attempting to renegotiate the terms of that loan. Christie said any change in the terms will not happen.

“If that means they go bankrupt they go bankrupt. That’s their choice. But I’m tired of this,” Christie said.

Additionally, Christie said there was “no chance” he would consider an extension on the 150-day period the state granted the city to develop a five-year plan to fix finances. That period is scheduled to end in November. If no plan is developed by that point, the state will take over the city’s government.

Note: This article was corrected. It originally misstated the terms of the $74 million loan and wrongly referred to it as a an “additional” loan to what was received in May.