Harrisburg bankruptcy draws several objections, dismissal requests

By Caroline Salls

Pittsburgh, Oct. 28 - The Chapter 9 bankruptcy petition filed by the city council for the City of Harrisburg, Pa., drew several objections Friday, according to filings with the U.S. Bankruptcy Court for the Middle District of Pennsylvania.

The latest round of objections to the case came from municipal bond insurer Ambac Assurance Corp., the American Federation of State, County and Municipal Employees, District Council 90, the Fraternal Order of Police, Capital City Lodge No. 12, the County of Dauphin, Pa., and TD Bank, NA, Manufacturers and Traders Trust Co. and Assured Guaranty Municipal Corp.

In addition, creditor Syncora Guarantee Inc. and National Public Finance Guarantee Corp. joined the objections filed by other parties to the petition.

All of the objections cited a Pennsylvania law that was recently amended to prohibit a third-class, financially distressed city from filing bankruptcy until July 1, 2012.

Several of the objecting parties asked the court to dismiss the Chapter 9 case.

Harrisburg filed for bankruptcy on Oct. 12. Its Chapter 9 case number is 11-06938.

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