Harrisburg, Pennsylvania, Debt Piled Up for Profit, Lawyer Says
This article is for subscribers only.
Harrisburg’s incinerator debt, which pushed Pennsylvania’s capital into insolvency, generated $49.1 million in fees to raise $310 million, a sign that the sales were at least partly driven by the profit they generated, said Mark Schwartz, a bankruptcy lawyer for the City Council.
Documents provided by Schwartz that summarize some of the debt sales tied to the trash-to-energy plant from 1998 to 2007 show the Harrisburg Authority paid $39.7 million in fees, including premiums for bond insurance. He said he has additional evidence showing that the total surpassed $49 million.