Latest in Harrisburg Bankruptcy Saga


US Bankruptcy Judge Mary France has ruled that the bankruptcy petition filed by the majority of the city’s council members under Chapter 9 of the Bankruptcy Code is null and void. At a hearing to decide on the petition, Judge France ruled that the council was not authorized to file the petition.

In her judgment, France said, “For Chapter 9 bankruptcy to work, all of the branches of the municipality must be on the same page. Therefore I find that city council was not authorized to file the petition on Oct. 11.” Harrisburg Mayor Linda Thompson and Pennsylvania State Governor Tom Corbett had not supported the bankruptcy filing. Other parties that opposed the bankruptcy were Harrisburg’s Fraternal Order of Police and the American Federation of State, County and Municipal Employees through their local affiliates.

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