2011-12-29 / Local & State

Troubled Pa. Capital Pushes Bankruptcy Case Appeal

HARRISBURG, Pa. (AP) – A lawyer for Harrisburg City Council is pressing a federal bankruptcy judge to allow its case to advance.

Lawyer Mark Schwartz said Thursday that he believes Judge Mary France’s earlier decision to reject the City Council’s appeal was “arbitrary, in violation of the rules and due process.’’

A divided City Council voted in October to seek bankruptcy protection from an approximately $300 million debt tied to Harrisburg’s trash incinerator. France dismissed the filing last month and last week rejected the council’s appeal.

Meanwhile, The Patriot- News of Harrisburg reports that a state-appointed financial custodian has ordered the city agency that owns the incinerator to start a formal process to sell the facility. The custodian, David Unkovic, has until Feb. 6 to submit a repayment plan to a state judge.

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