By Akiko Matsuda

 

The developer of American Dream, the $6 billion mega-shopping mall in East Rutherford, N.J., deposited $13.87 million on Wednesday to cover the missing May interest for an $800 million municipal bond, but the amount fell short to fully cure a default, according to a notice to bondholders Thursday

The payment didn't resolve the default because it didn't include interest on the overdue balance, the notice said.

Developer Triple Five Group had missed a bond interest payment due June 1, and bondholder trustee U.S. Bank NA withdrew $11.35 million from a debt service reserve account to pay bondholders. The developer was required to make the payment by Thursday to avoid a default.

Triple Five didn't immediately respond to a request for comment.

 

Write to Akiko Matsuda at akiko.matsuda@wsj.com

 

(END) Dow Jones Newswires

June 16, 2022 18:48 ET (22:48 GMT)

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