Wednesday, October 12, 2011
Economic footnote from the U.S. -- a flat broke Harrisburg PA files for bankruptcy
Harrisburg is in hock to the tune of about $300 million, and is struggling to pay its basic bills. Many city vendors have not been paid for months. The city council voted 4-3 to file the bankruptcy, a move which mayor Linda Thompson strongly opposed.
The largest Chapter 9 bankruptcy in U.S. history occurred in 1994, when Orange County, California, filed after suffering more than $1 billion in investment losses. Not all states permit their cities or counties to invoke Chapter 9 relief, and some require advance legislative approval before a local entity bankruptcy may be filed.
at 11:35 PM