American Dream Mall Risks Default After Drawing on Reserves (1)

American Dream, the $5 billion super mall in New Jersey’s Meadowlands that was hit hard by the pandemic, is at risk of defaulting on municipal bonds after its owner failed to deposit money required to pay debtholders.

The trustee representing bondholders tapped into $11.4 million of reserves to pay investors in $800 million of the debt, according to a securities filing. The mall’s owner, Triple Five Group, failed to deposit a quarterly payment with the trustee, and must do so by June 16, or it will be in default, the filing said.

The securities are backed by fees ...