Another economic casualty is striking the Tri-County region. Federal-Mogul announced it is closing their plant in Boyerrtown by year’s end idling 70 workers. The company is streamlining their operations to be more globally competitive, due to demand for their products.
Federal-Mogul manufactures automotive products.
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Dauphin County has authorized TD Bank to purse legal action against Harrisburg to force the city to pay $35 million in bond notes.
Dauphin County is now responsible for the incinerator payments, due Dec. 1, since Harrisburg missed the Aug. 15 deadline.
Shortly before the deadline, the city and the Harrisburg Authority notified TD Bank that neither could pay the $35 million. The authority or the city was required to transfer $23.9 million to one bond debt-service account and $10.8 million to another, as per a 2007 city guaranty agreement.
The county has had to make $3.5 million in incinerator bond payments for the authority and city since May 2009.
Harrisburg will know shortly whether it will have to file for Chapter 9 bankruptcy. The city might not have to file bankruptcy IF the other stakeholders are willing to accept a loss. Otherwise, Harrisburg has no other choice.
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