Harrisburg, Pa., files for chapter 9 bankruptcy: report

Reuters News
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Posted: Oct 12, 2011 9:33 AM
Harrisburg, Pa., files for chapter 9 bankruptcy: report

(Reuters) - The Harrisburg, Pa., City Council passed a resolution on Tuesday night calling for a Chapter 9 bankruptcy filing, a city official said on Wednesday.

According to media reports, the city filed the documents for a rare municipal bankruptcy with a federal court after the vote. Bloomberg News reported the city listed liabilities of of $500 million and assets of $100 million.

The state legislature is considering a bill that would call for an eventual takeover of the city and the forced implementation of a fiscal rescue plan.

(Reporting by Edith Honane; Editing by Theodore d'Afflisio)