American Dream Munis More Likely to Be Restructured, MMA Says

About $1.1 billion of municipal-bond debt sold for the American Dream mega mall in New Jersey is “increasingly likely” to be restructured, according to a June 8 note by Municipal Market Analytics, an independent research firm.

• American Dream at risk of defaulting on municipal bonds after its owner failed to deposit money required to pay debtholders
• This month, PILOT debt was paid using reserves tied to the bonds for the first time
• “The developer’s earlier breach of compliance requirements to receive grant revenues (not to mention the project’s poor operating performance) and now the default on a PILOT installment suggests ...