Harrisburg, creditors agree to plan to end crisis

|By:, SA News Editor

The receiver for insolvent Harrisburg has agreed with creditors who are owed $362.5M on proposals to end the city's financial crisis and avoid another bankruptcy filing.

The capital of Pennsylvania plans to sell its waste-to-energy plant and lease its parking system. While that wouldn't fully repay the creditors, they could receive more money later, such as from revenue from a fuel tax and from future parking income.

The settlement needs the approval of the judge overseeing the case.

The creditors include bond insurer Assured Guaranty (AGO) and Dauphin County, who would receive $210M out of claims of almost $300M.

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