Leaders of the New Jersey’s legislature said yesterday they were working on a bill that would reconcile competing approaches to fix Atlantic City, Bloomberg News reported yesterday. State and city officials have been fighting for weeks over the level of state control and whether the municipality could enact deeper spending cuts that could mean new labor contracts for workers. State intervention wouldn’t necessarily prevent creditors from being saddled with losses, said Jim Colby, who runs the $1.9 billion Market Vectors High Yield Municipal Index exchange-traded fund at Van Eck Global. Colby pointed to Detroit, which was in the hands of a state-appointed emergency manager who led it into a record bankruptcy resolved in part through a debt restructuring. Governor Chris Christie (R) has indicated he could let Atlantic City go into court protection.
