Atlantic City poised to accept state loan to keep city from defaulting

Atlantic City is about to get a long-awaited state loan to help it stave off default and possibly bankruptcy.

The City Council called an emergency meeting Thursday to vote to accept the $74 million loan to help the nearly broke city get through the rest of the year.

Moody’s Investors Service warned on Wednesday that the city would likely default on a $3.4 million debt service payment on Monday if the loan did not go through before then.

Council President Marty Small said the funds will relieve the short-term pressure on the city as it tries to come up with a fiscal reorganization that would prevent the state from taking over its finances and major decision-making power in November.