Harrisburg Files for Bankruptcy on Overdue Incinerator Debt
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Harrisburg, Pennsylvania, which faces a state takeover of its finances, filed for bankruptcy protection after failing to pay the debt on a trash-to-energy incinerator.
The City Council made its 4-3 decision yesterday against the advice of a city attorney who said members did not follow proper procedure. It’s this year’s ninth bankruptcy filing by a municipal-bond issuer and the first by a U.S. state capital in at least three decades, said James Spiotto, a partner at Chapman & Cutler in Chicago who tracks such cases.