Indiana, PA - Indiana County

Judge boosts recovery plan

on November 29, 2013 9:42 AM

HARRISBURG (AP) — A state judge on Wednesday extended Harrisburg’s receivership for two additional years in what officials described as a procedural move that will allow time to complete the city’s financial recovery plan.

Commonwealth Court Judge Bonnie Brigance Leadbetter issued an order granting a joint request by the state and the city to extend the receivership until December 2015.

A spokesman for state-appointed receiver William Lynch said the two-year increment is required by law and doesn’t reflect the time Lynch expects to stay on as receiver.

Lynch and his team of lawyers and financial consultants are finalizing a plan that has been under negotiation since an unprecedented state takeover of the debt-strapped state capital two years ago.

The plan calls for the city’s municipal trash incinerator, whose $350 million debt the city has been unable to pay, to be sold to the Lancaster Solid Waste Management Authority. The authority is expected to pay as much $132 million for it.

Harrisburg’s creditors have agreed to walk away from potentially more than $100 million, a concession that city councilors who opposed the takeover demanded as part of any deal.

 

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