Moody's: Harrisburg may end up in Chapter 9 bankruptcy
Despite Gov. Corbett, bond-watchers think the state capital could end up under federal court protection, exposing public officials and bond pros to creditors and investigators
Moody's: Harrisburg may end up in Chapter 9 bankruptcy
Joseph N. DiStefano
Harrisburg's financial problems "could ultimately result in a Chapter 9 bankruptcy filing for the city," Moody's Investors Service said today in a report threatening to downgrade bonds from the city parking authority (they're already Ba3).
That's despite Gov. Corbett's efforts to impose a state receiver to sell city assets and cut city servcies to avoid a Chapter 9 filing. Bankruptcy could expose former public officials, lawyers, and bond professionals to scrutiny, creditor action and even public-agency investigation of hundreds of millions of dollars in questionable bond deals that have driven the state capital city toward default. Harrisburg Parking Authority's "credit quality faces considerable downside risk from myriad uncertainties surrounding the city's eventual exit from fiscal distress, including the possibility that the HPA's assets might be taken by a bankruptcy court to pay off a portion of the city's debts as part of a future bankruptcy process," according to Moody's. Also, "trust indenture amendments executed in July 2011 appear to prevent the sale or lease of HPA assets without ensuring full bondholder security." Which could quash the state-backed receiver's efforts, or the city's own attempts, to seize parking revenues.
Take a guess which political party runs the show ?? It rhymes with RAT— blombard- You must mean "fat cat" right? Like the fat cat republicans in Harrisburg that take all our tax revenue and give us nothing back. — PhillySteel36
- ... The unions have ruined this country. Look how many big, UNION LADEN, cities are in financial trouble. And the Obamanation is taking this country down the same path. The Libs solution to Harrisburg will be to tax the rich even more.— jonboy
- The other 3 Cities in America headed down the Bankrupt path are all governed by which political party? Hint: It rhymes with SCAT— blombard
- The 10 most dangerous cities in America are all run by which political party ? Hint: It ryhmes with FAT CAT— blombard
- Let them eat cake at the Charter School in the corner store.— Cuddles
- The city of Philadelphia is $4,700,000,000 in debt, yet increase its budget by $100 million this year. What political party has been in control of the city over the last 50 years. racking up deficit after deficit? HINT: It ryhmes with VAT (as in VAT of corruptness)— blombard
- More Republican destruction of the economy at the expense of women, children, the elderly, minorities, and gays. The Republican Party should be outlawed and Corbett, Christie, Romney, Ryan, Bush, Cheney, Rumsfeld, and Palin all should be jailed at Allenwood, Leavenworth or a SuperMax.— eldiablodelsol2009
- Do you self-hating [...] ever have an independent thought? Thought not. LOL-Just keep slinging that party rhetoric [...]. Yeah, the UNIONS have ruined our country, what a joke! Your hero, George Bush, took a 236 billion dollar surplus and turned it into a national deficit in the TRILLIONS of dollars. Perhaps a pointless 10 year war and ruthless deregulation of our banking system weren't such a good idea? But you imbeciles just keep blaming public workers, Mickey Mouse, Santa Claus, whoever the GOP tells you to. Night-night.— Jabey
- diablo..put down the MSNBC talking points memo, turn off TV, take your meds and come back in an hour and read a fairytale to us..all the money in the world from the rich cats can not solve this nations problems [...]. It is the leadership and nothing more.— blombard
- Why is Corbett's pic at the headline of this article?? What did he do to make that city go broke?? It should be Harrisburg's city councils pic— keapitreal
- Corbett is who we thought he was. Now he's destroying this state and you republicans are surprised all of the sudden?— linuxdood
- keapitreal..it is the Inky's way of subliminally linking this to Corbett. The next article will be about Harrisburg not getting enough money from Corbett to support the Capitol and it's spending. 1.5% of the city population works for the city..to me that is extreme.— blombard
- Those are real jobs, blombard, providing real services to people who need them. Try abolishing them and see how quickly civilization descends into anarchy.
If you would like to know who destroyed Harrisburg, and many other cities across the country, just walk into your friendly gangster bank.— Stan Shapiro - The common thread here is Ed Rendell! After leaving the City of Philadelphia in financial ruin as a two terms Maor there, he bought the same financial distress to the entire State of PA! Nice job voters! Philly is still in ruins years after he left. The State has a long road to haul to recover from that disaster they called a Governor— beermoney
