Do you think it won't happen here? Don't kid yourself. Look at Chicago's track record. Look at all the triple dipping public servants we have. There will be nothing left after they get theirs.
Seeking to stave off a state takeover of its beleaguered budget, the city of Harrisburg, Pa., filed for a rare Chapter 9 municipal bankruptcy on Wednesday.
Seeking to stave off a state takeover of its beleaguered budget, the city of Harrisburg, Pa., filed for a rare Chapter 9 municipal bankruptcy on Wednesday.
Harrisburg, the Pennsylvania capital that previously defaulted on its debt, cited a “continued erosion of its finances,” in a resolution that was passed late Tuesday approving the bankruptcy.
According to Bloomberg News, Harrisburg listed liabilities of $500 million, compared with assets of $100 million. A clerk at the U.S. Bankruptcy Court for the Middle District of Pennsylvania confirmed receiving a physical copy of the filing.
The resolution to authorize the Chapter 9 filing passed by a narrow 4-3 vote, Kirk Petroski, the acting city clerk of Harrisburg, told FOX Business. The resolution said bankruptcy will provide the city with “the necessary protection from its creditors while it develops and negotiates a plan for adjusting its debts.”
The resolution to authorize the Chapter 9 filing passed by a narrow 4-3 vote, Kirk Petroski, the acting city clerk of Harrisburg, told FOX Business. The resolution said bankruptcy will provide the city with “the necessary protection from its creditors while it develops and negotiates a plan for adjusting its debts.”
However, acting city attorney Jason Hess said the measure wouldn’t be binding because the city council didn’t follow procedure, Bloomberg News reported.
The city's fiscal troubles have been triggered by an overhaul of the budget and a trash-to-energy incinerator that didn’t increase revenue by as much as expected, Bloomberg reported. The move comes as the state had been mulling a takeover of the city’s finances and forcing the installation of a fiscal rescue plan.
Chapter 9 filings by municipalities are very rare. According to Alan Gover, a partner at White & Case who has advised municipalities on restructuring options, there have been just 35 such filings since 1981.
"The reason is that Chapter 9 cannot do for municipalities what Chapter 11 can do for troubled businesses -- smoothly downsize and if necessary redo the balance sheet by converting debt to equity," Gover said in an email. "The business of municipal government is providing basic civil services that cannot be easily eliminated without serious repercussions...Unless the citizens want to become a company town by privatizing all their public assets, the bargaining table will serve them better than the courtroom."
it won't happen here.
ReplyDeleteDON'T BE SO FAST TO DUMP ON DALEY FOR THIS MESS. WHERE WAS EVERYONE ELSE? WHY DIDN'T THEY SAY SOMETHING.
ReplyDeleteCheck the Union Bosses and Business Agents Pensions. Tell me they don't get these huge pensions so they can continue to kick back a portion of it to the Democommunist Party after they retire. Yes, the Demmocommies still have was to get retribution on them even after they retire, if they don't pay up. The biggest Con-Job going, while everyone else pays in legitimately and they threaten to take a chunk of ther pensions away. Why doesn't anyone speak up ? Remember what happened to Michael Scott, who lost all that guaranteed Olympics Chicago money? remember how quickly it was ruled a suicide ? Don't think there are professional mobsters out there to make murders look like suicides? Guess again. Michael Scott was a message to the rest, who take big Mob loan money and lose it... Ask any real homicide Detective in the City if this fit the perameters of a "suicide"... They'll laugh and tell you, Hell no..
ReplyDeleteCheck out the pensions of the Labor union Lackys. The big cheeses, business Agents, etc; are stealing pension systems BLIND, while the working union guy gets sold down the drain, with everyone after a chunk of the pensions they were promised and earned....
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