2011-10-20 / Features

Pa. Capital's Bankruptcy Could Be Long, Difficult


HARRISBURG, Pa. (AP) – The years-long buildup of debt in Pennsylvania's capital city is headed for a fight in a federal bankruptcy court, where the outcome is far from clear and could be years away, not to mention costly. Widener University law professor Juliet Moringiello said Thursday that a successful fight in bankruptcy court could force some of Harrisburg's bondholders to accept less than they are owed.

The city is unable to pay the approximately $300 million in debt on its trash incinerator, much of which stems from a costly upgrade that went awry.

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