American Dream $800 Million Bond Due This Week

The American Dream $5 billion megamall in East Rutherford, North Jersey, has failed to make a bi-annual interest payment on debt leading to a potential default this week on its $800 million bond.

Renowned for its iconic designer shopping and dining, including many kosher venues and indoor entertainment attractions, the mall has become a magnet for locals and tourists alike.

Draws include the indoor garden scenery, year-round ski and snow resort, mirror maze,  ice rink, Nickelodeon Universe theme park, choice of blacklight or Angry Birds mini-golf, Sealife Aquarium, surfing wave pool, 3D Street Chalk Museum, Legoland Discovery Center, and more, including a Ferris wheel high enough to provide an areal view of the NYC skyline.

According to a securities filing reported by Bloomberg, although the mall generated about $173 million in revenue in 2021, expenses totaled more than $232 million, leading to a loss of more than $60 million.

The American Dream megamall's PILOTS program allowed it $800 million of municipal debt backed by payments in place of taxes. 

Triple Five Group, the Canadian developer of the East Rutherford mall, was notified last week that the mall had neglected to pay an $11.4 million bond interest payment due Wednesday, June 1.

If the interest payment is not made by Thursday, June 16, "default by the developer will exist under the financial agreement," the trustee told bondholders on Friday, June 10.

The bondholders and banks lent Triple Five the $2.7 billion required to develop the American Dream.