$310M Incinerator Debt Drives Pa. Capital Into Ch. 9

Law360, New York (October 12, 2011, 2:08 PM EDT) -- Harrisburg, Pa., filed for Chapter 9 bankruptcy protection on Tuesday, preempting a looming state takeover and turning to the courts to unravel a $310 million debt related to the bungled financing of a trash incinerator.

In its petition, the Pennsylvania capital lists $458 million in creditor claims and says it faces “imminent jeopardy” from six pending lawsuits over missed debt service payments. The largest chunk is owed to TD Bank, which financed more than $280 million in retrofits and repairs to the incinerator over the past...
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