Saturday, June 25, 2011

Harrisburg, Pennsylvania still weighing bankruptcy

As Pennsylvania's deeply indebted capital of Harrisburg weighs the state's rescue plan, lawmakers are at odds over whether chapter 9 municipal bankruptcy should still be on the table.

A bankruptcy filing could carry a stigma that might freeze Harrisburg, a city of 50,000, sitting about 100 miles west of Philadelphia, out of the municipal debt market.

At the root of Harrisburg's troubles is a financing scheme to fund its state-of-the-art trash-burning plant that left the city with roughly $300 million in debt.

Read the full article from Reuters

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