Covanta Energy Says Pa. Capital Can't Seek Bankruptcy

Law360, New York (October 26, 2011, 4:55 PM EDT) -- A Covanta Energy Corp. unit on Wednesday objected to Harrisburg, Pa.'s recent Chapter 9 bankruptcy petition, saying the city is prohibited by state law to file for bankruptcy.

Covanta Harrisburg Inc., which is owed $23.6 million by the Pennsylvania capital, asked the bankruptcy court to dismiss the city's petition because state law specifically prohibits financially distressed cities of a so-called third class from filing for bankruptcy relief before July 1, 2012.

"The bankruptcy code, in deference to the Tenth Amendment of the U.S. Constitution, does not...
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