Harrisburg Hires Lawyers….Considers Bankruptcy Idea

Posted By on September 28, 2010

The City Council of Harrisburg, capital of Pennsylvania has voted to hire lawyers to explore bankruptcy protection.

The City Council voted 5-2 tonight to seek professional advice on bankruptcy or state oversight. Harrisburg needed state aid to avoid default on $3.3 million of bond payments this month.

The city, which has 47,000 residents, and has missed about $8 million in debt-service payments this year on bonds issued in connection with a trash-to-energy incinerator. The city owes another $40 million by the end of the year, and was sued by its home county, Dauphin, and  bond insurer Assured Guaranty Municipal Corp. over its failure to honor the commitments.

About the author

Comments

Comments are closed.

Copyright © 2021 The Stated Truth