American Dream Mall pays back Muni bonds by draining reserves

Bloomberg has reported that New Jersey’s 5 billion dollar American Dream mall has drained a reserve fund to make a bond payment. The mall, which was expected to be a large attraction for both New Jersey residents, neighboring New Yorkers, and tourists, has struggled to become the destination it had planned to be due to the ongoing COVID-19 pandemic.

The reserve emptied was for a 9.3 million dollar payment due Tuesday on 290 million dollars of debt supported by sales tax receipts. According to reserve filing, 820 dollars is left after this payment. The next payment is due on August 1, and it is unclear whether or not American Dream will make this payment.