Law Firm Advises Harrisburg City Council Not To Pursue Bankruptcy

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Cravath, Swaine & Moore has advised Harrisburg City Council, via a two hundred page document, not to pursue bankruptcy at this time.  Rather the city should stay the course with Act 47 and try to negotiate with stakeholders.

Harrisburg entered Act 47 after the city amassed a $288 million debt from retrofitting its incinerator.  This has nearly bankrupted Pennsylvania’s capital city and put a strain on Dauphin County as well.  The county became involved when Harrisburg City and Authority were unable to make a loan payment last year and were on the verge of default.