The effect of Scranton City Council allowing the Scranton Parking Authority to default on a debt was immediate on Friday, officials said.
The bank that the city had been hoping to get financing from to be able to keep the city afloat this year, M&T Bank, backed out first thing Friday morning because of the default, said Mayor Chris Doherty and city Business Administrator Ryan McGowan.
On Thursday night, council voted against covering a $940,000 SPA debt that was due Friday, thus allowing the authority to default even though the city had backed the debt.
“The city defaulted on the guarantee. This default has left us with nowhere to go,” Mr. McGowan said of the city’s hopes for getting loans.
Read more: http://thetimes-tribune.com/news/bank-yanks-loan-offer-to-scranton-after-council-allows-parking-authority-to-default-1.1324183