January 16, 2014 / 10:06 PM / 4 years ago

Pennsylvania files to release capital city from receivership

NEW YORK, Jan 16 (Reuters) - Pennsylvania has asked a court to remove the fiscally troubled city of Harrisburg from receivership after it lowered its debt burden through two recent transactions with the state, Pennsylvania said on Thursday.

The state also moved to appoint a coordinator for the city that would continue to implement a rescue plan that the state put in place when the city went into receivership in 2011.

“Vacating the receivership and appointing a coordinator is a necessary and critical step in moving the Harrisburg Strong Plan forward,” said Alan Walker, secretary of the state’s Department of Community & Economic Development.

Walker proposed Frederick Redding as coordinator, responsible for “directing ongoing implementation of the plan.”

“After decades of financial difficulties and nearly three years of fiscal emergency, this action represents the next step in Harrisburg’s path to fiscal stability,” said Walker.

Harrisburg retired more than $360 million in debt in two transactions in December: the sale of its trash incinerator to a county waste authority and the lease of parking lots, garages and meters to the state’s development agency.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below