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City of Harrisburg Seeks Insolvency Protection


City of Harrisburg Seeks Insolvency Protection

The Harrisburg City Council, Pennsylvania, voted to seek Chapter 9 protection late Tuesday, so as to seek relief from $300 million of debt. Mark Schwartz, the bankruptcy attorney is advising the council on the filing. Pennsylvania 's capital city has staggered on the verge of bankruptcy for several years due to a massive debt load related to a unsuccessful plan for renewing a municipal garbage incinerator. In December 2010, the state government tried to help the city by granting it entrance into Pennsylvania's Act 47 program for distressed municipalities. Harrisburg has less than 49 creditors and guaranteed debt of $ 242 million; $65 million of that sum is past due. The city recorded its resources in the $100 million to $500 million range.

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