American Dream Developer Misses $800M Bond Payment: Reports

Paramus NJ

08 June, 2022

11:42 AM

Description

EAST RUTHERFORD, NJ — The developer of American Dream megamall missed a payment on an $800 million municipal bond and East Rutherford's mayor says the complex is "definitely in trouble," local media report. An American Dream spokeswoman declined Patch's request for comment. A letter from U.S. Bank on June 3 shows that Triple Five Group did not make a semi-annual payment that was due to the bank on June 1. U.S. Bank is the trustee for the bond. U.S. Bank took $11,355,844.05 from a reserve account to make the interest payment, the letter said. If Triple Five does not make the payment by June 16, they risk the loan defaulting, the letter said. East Rutherford Mayor Jeffrey Lahullier told reporter Daniel Munoz that he doesn't think the mall "can make ends meet." In February, as Patch reported, the mall had $820 left in reserves after making a $9.3 million payment at the beginning of the year. Lahullier said the borough is talking with attorneys about how to proceed; East Rutherford has its own tax agreement with American Dream, as Munoz reported for NorthJersey.com. The Wall Street Journal originally reported this story.