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Harrisburg seeks bankruptcy, citing ‘overwhelming debt’; petition signed by council member

Pennsylvania’s financially distressed capital city is seeking Chapter 9 bankruptcy, citing overwhelming debt, but Harrisburg’s mayor and top city lawyer said the filing signed by a City Council member was not legal. The petition docketed by U.S. Middle District bankruptcy court Wednesday listed about $458 million in creditors and claims, and said the city faced “imminent jeopardy” from six pending legal actions by creditors related to a debt-saddled trash incinerator.

Pa. capital nearing bankruptcy

In a highly unusual move, the city of Harrisburg says it will not make a $3.3 million payment.

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