According to securities filings, the mall, owned by developer Triple Five Group, had to draw on about $9.3 million in its reserves to cover an Aug. 2 payment on about $290 million in bond debt. It still has another $9.3 million left in reserves that could cover its next payment due on Feb. 1.
American Dream issued the bonds, which are backed by 75% of its sales tax receipts for purchases at the mall, in 2017, according to Bloomberg. But, investors haven’t been fazed by the cash flow problems at the mall, with the bonds last trading at 105 cents to a dollar on June 9.
The 3.1 million-square-foot American Dream mall in East Rutherford, N.J., weathered nearly two decades of construction, three developers, and a major retail contraction before it finally opened its doors in 2019. It only stayed open for six months before the pandemic caused the mall to temporarily shutter.