Municipal bonds issued for American Dream, the $5 billion mall and entertainment complex in New Jersey’s Meadowlands, failed to make a semi-annual interest payment due Wednesday.
Holders of the bonds, which are backed by New Jersey economic development grant revenue, didn’t receive the $8.8 million payment, according to a regulatory filing. Last August, investors who bought the $290 million issue also didn’t receive an interest payment.
The state hasn’t completed a review of certification of project spending by American Dream’s developer, which is necessary to release the grants.
The American Dream mall in East Rutherford, N.J.
Photographer: Timothy A. Clary/AFP/Getty Images
The state grants are based on sales-tax ...