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Bloomberg NewsThe bankruptcy case filed by Harrisburg, Pennsylvania, the state capital, was thrown out by a judge who ruled the city council wasn’t authorized to file the petition.
U.S. Bankruptcy Judge Mary D. France held a hearing yesterday in Harrisburg on whether the council violated state laws last month when a majority opted to file under Chapter 9 of the bankruptcy code. Mayor Linda D. Thompson opposed the filing.
“For Chapter 9 bankruptcy to work, all of the branches of the municipality must be on the same page,” France said. “Therefore I find that city council was not authorized to file the petition on Oct. 11.”
Pennsylvania now will pursue a plan to put Harrisburg into state receivership. On Nov. 18, Governor Tom Corbett’s administration nominated David Unkovic, chief lawyer for the state economic development department, to be receiver for the city. Under state law, Unkovic’s appointment must be approved by a Pennsylvania court.
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http://www.bloomberg.com/news/2011-11-23/harrisburg-bankruptcy-petition-thrown-out.html