E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 4/13/2012 in the Prospect News Distressed Debt Daily and Prospect News Municipals Daily.

Harrisburg receiver Unkovic resigns; temporary administration named

By Caroline Salls

Pittsburgh, April 13 - The City of Harrisburg, Pa., receiver David Unkovic resigned unexpectedly from that post on March 30, according to a status report filed April 11 with the Commonwealth Court of Pennsylvania.

According to the report, the Department of Community and Economic Development (DCED) will administer the Office of the Receiver, pending appointment of a new receiver by the commonwealth court.

In addition, Frederick Reddig, the executive director of the Governor's Center for Local Government Services, has been designated to fulfill the temporary assignment of administering the Office of the Receiver on behalf of the DCED.

As previously reported, Unkovic was appointed receiver in December in connection with the implementation of the city's recovery plan.

Harrisburg city council attorney Mark D. Schwartz responded to the situation in e-mails sent Friday.

"This is simply preposterous," Schwartz said. "There is no receiver. There is nothing to be done by the governor other than to appoint another receiver.

"The status report was to be filed by the receiver. Instead it is filed by a law firm without a receiver client.

"Moreover, the admissions made by Mr. Unkovic in his resignation taint everything that has been done." The Harrisburg city council's October petition for relief under Chapter 9 of the Bankruptcy Code was dismissed on Nov. 23 in response to objections filed in the case.

The objectors claimed Harrisburg did not qualify as a debtor, citing a Pennsylvania law that was recently amended to prohibit a third-class, financially distressed city from filing bankruptcy until July 1, 2012.


© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.