Will this effect us in Pittsburgh?

[BrianTH]

Originally Posted by UKyank

It is appearing more & more unlikely that the bankruptcy will actually go through. Dauphin County says they will file a motion to dismiss, the governor says he won't allow the city to file. 2 state senators are trying to get a bill passed to not allow a PA city to file for bankruptcy but require a receiver to step in.

It is going to be interesting--Harrisburg is trying to get the process started before Corbett and his allies can stop them, and I think it is a good bet a bunch of litigation is going to come out of this.

[SteelCityRising]

Originally Posted by BrianTH

Corbett and his minions

Fixed for you!

[BrianTH]

Originally Posted by SteelCityRising

Fixed for you!

Actually, I think Corbett is more minion than master himself.

[UKyank]

From pennlive.com website:



Q: DID HARRISBURG REALLY 'DECLARE BANKRUPTCY'?

A: No. Harrisburg City Council voted 4-3 to file a petition requesting Chapter 9 bankruptcy protection in U.S. Bankruptcy Court.

Q. Does this mean the city gets bankruptcy protection?
*
A: Not so fast. Unlike a person or a company, a city can’t simply choose bankruptcy protection — it can only request it. And a bankruptcy judge will only grant that protection if the city has satisfied certain conditions.

Q: Can Harrisburg satisfy those conditions to qualify for bankruptcy protection?
*
A: It’s possible, but very unlikely, experts say, because:
** *• Council would have to get a majority of one class of creditors to approve bankruptcy, which will not happen, OR
** *• Council would have to convince a judge that it had negotiated in good faith or was unable to negotiate with its creditors. But council rejected recovery plans from both the state and Mayor Linda Thompson, and never proposed a plan of its own.
** *• Federal law prohibits a city from filing for bankruptcy without the state’s consent. Gov. Tom Corbett has already gone on record as opposing the bankruptcy option for Harrisburg.
** *
Q: What happens next?
*
A: The Dauphin County commissioners likely will file a motion to dismiss council’s bankruptcy petition.

Q: Does this affect the state takeover plan?
*
A: No. Sen. Jeffrey Piccola, R-Dauphin County, said lawmakers will continue city takeover efforts when the Senate reconvenes Monday. Attorney Mark Schwartz, working for City Council, has already called that move illegal and vowed to fight it in court.
*

[BrianTH]

I'm not sure about the details of their answer to the "Can Harrisburg satisfy those conditions to qualify for bankruptcy protection?" question, but I would generally agree it is far from clear this will work.