Twisted Titan
6th December 2011, 07:10 AM
http://m.aol.com/dailyfinance/default/articleStory.do?category=main&url=http://www.dailyfinance.com/2011/11/30/abracadabra-bankrupt-cities-are-suddenly-un-bankrupt-or-not/&icid=dsk_df_news
Last month, the capital city of Pennsylvania filed for Chapter 9 bankruptcy protection. Harrisburg had taken out a $317 million loan to fund a municipal incinerator, but it didn't have the money to pay even interest on the loan, much less the principal.
That was a big black eye for Harrisburg, for the state that surrounds it, and, crucially, for the mayor who allowed things to deteriorate so badly. So the mayor challenged the council's bankruptcy petition, and according to U.S. Bankruptcy Court Judge Mary France, Harrisburg was indeed legally required to get the mayor's sign-off before filing for Chapter 9.
The court threw the bankruptcy petition out, and voila! Harrisburg is magically not bankrupt anymore. Or is it?
Last month, the capital city of Pennsylvania filed for Chapter 9 bankruptcy protection. Harrisburg had taken out a $317 million loan to fund a municipal incinerator, but it didn't have the money to pay even interest on the loan, much less the principal.
That was a big black eye for Harrisburg, for the state that surrounds it, and, crucially, for the mayor who allowed things to deteriorate so badly. So the mayor challenged the council's bankruptcy petition, and according to U.S. Bankruptcy Court Judge Mary France, Harrisburg was indeed legally required to get the mayor's sign-off before filing for Chapter 9.
The court threw the bankruptcy petition out, and voila! Harrisburg is magically not bankrupt anymore. Or is it?