Judge: Harrisburg Council Not Authorized to File Bankruptcy

By Jon Hurdle

HARRISBURG, Pa. (MNI) – A federal bankruptcy judge Wednesday
struck down an attempt by Pennsylvania’s capital city to solve its
financial crisis by filing for Chapter 9 bankrupcty protection.

U.S. Bankruptcy Judge mary France said the Harrisburg city council
was not authorized to make the rare municipal bankruptcy filing as
it instructed its attorney to do Oct. 10.

“City council was not authorized to file the petition in October,”
France said in an oral ruling that will be followed by a written
decision.

Harrrisburg is reeling under about $310 million of debt
accumulated by a city trash incincerator.

-more-

** Market News International **

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