Harrisburg Bankruptcy Legality to Be Argued Nov. 23 in Court

[marmar]

Oct. 17 (Bloomberg) -- Harrisburg, Pennsylvania, might have its bankruptcy dismissed as early as Nov. 23 under a schedule set up by the federal judge overseeing the case, which faces challenges that it violates local, state and federal laws.

U.S. Bankruptcy Judge Mary D. France in Harrisburg adopted a schedule for the case suggested by Mayor Linda D. Thompson, who opposes the bankruptcy filed by a majority of the City Council.

Thompson and state officials claim the action was invalid. They made different arguments for immediately ending the Chapter 9 case, which began Oct. 11 after four members of the state capital's City Council voted to hire a lawyer to file it. Thompson said the council didn't follow proper procedures. The state said the bankruptcy violates a law enacted this year.

The Pennsylvania Senate is considering legislation that would make Harrisburg the first city in the state to go into receivership. A receiver couldn't end the bankruptcy without approval of the court, lawyers for the city and the council members said today in separate interview. .............(more)

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