The Remnant Online
News => Economic Times => Topic started by: Mimi on October 12, 2011, 05:31:41 PM
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Pennsylvania capital Harrisburg files for bankruptcy
A railway bridge over the Susquehanna River in Harrisburg 12 October 2011 A final vote on a state takeover plan of the city is expected next week.
The US city of Harrisburg - capital of the state of Pennsylvania - has filed for bankruptcy, making it the first state capital to do so.
Harrisburg faces debts of $300m (£190m) and has struggled to pay for services.
The move comes as the state legislature considers a takeover of the city and the implementation of a "rescue plan".
Last year, municipal bond analysts expected many bankruptcies from cities under debt pressure, but few localities have actually taken the step.
The city council voted 4-3 on Wednesday to file for bankruptcy under a rarely used code for towns and cities.
Filing for bankruptcy is opposed by the city's mayor and state officials.
The BBC: http://www.bbc.co.uk/news/world-us-canada-15283148