Ambac, Other Private Cos. Slam Harrisburg Ch. 9 Bid

Law360, New York (October 28, 2011, 6:35 PM EDT) -- Bond insurer Ambac Assurance Corp. on Friday was one of several parties to beat a deadline for objections to Harrisburg, Pa.'s bankruptcy filing, arguing that state law prohibits the city from seeking a court restructuring.

Ambac said that a state law passed in June and signed by Gov. Tom Corbett prevents any "tier three" financially distressed municipality from filing for bankruptcy protection. A dissident group of four city council members sought bankruptcy protection for Harrisburg on Oct. 12.

Because the city is in violation of the...
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