2012-12-06 / Local & State

Bankruptcy Could Return To The Table In Harrisburg

By Marc Levy


HARRISBURG, Pa. (AP) – A Pennsylvania state law barring its debt-ridden capital city from seeking federal bankruptcy protection is expiring and that prospect could emerge again in talks with creditors.

The bankruptcy prohibition expires Friday. A spokesman for Harrisburg's state-appointed financial custodian William Lynch has said the power to seek bankruptcy protection gives him a stronger hand in seeking concessions from the city's creditors.

That ban and a state takeover were part of a twopronged effort by Republican lawmakers from suburban Harrisburg.

They wanted to stop city officials from seeking court approval for a commuter tax or bankruptcy protection to force creditors, including Dauphin County, to assume part of the debt.

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