Will Declaring Bankruptcy Help Atlantic City?

The Associated Press reports that Atlantic City's local government will meet this afternoon for permission to ask the state to declare bankruptcy.

Atlantic City has been struggling for quite sometime now especially with the continuous decrease of its casino industry. In addition it's still suffering from Gov. Chris Christie's veto of a financial aid package to help the resort, and $160 million in tax appeals from The Borgata, one of its top casinos.

The city has resisted state officials from taking over the situation. Regardless, it still needs to get permission from New Jersey in order to file for bankruptcy.

According to the report, State Senate President Steve Sweeney predicts that the Local Finance Board won't grant approval for the city declare bankruptcy. In addition, Sweeney says that if Atlantic City declares bankruptcy, the rest of New Jersey may face credit downgrades and higher costs messing the state's financial standing.

Now, we just wait for the verdict following the meeting Tuesday afternoon.

Source: Associated Press