Do the Wall Street wizards who engineered this disaster still get paid? I’m betting yes.
The filing — which listed debts in excess of $400 million, largely associated with a failed trash incinerator — pitched the city into political confusion. A spokesman for Mayor Linda Thompson initially said the filing had not been made. Ms. Thompson later held a new conference denouncing the move as “a sneak attack,” according to The Associated Press.
The Council’s decision came Tuesday night in a 4-to-3 vote. Immediately after, a lawyer for the Council faxed a petition for Chapter 9 bankruptcy to the United States Bankruptcy Court and filed it in person at 10 a.m. Wednesday.
The petition was called into doubt almost as soon as it was filed. A spokesman for Governor Corbett, Kelli Roberts, said the filing violated the state’s fiscal code, which was amended this year to bar cities like Harrisburg from filing for Chapter 9 bankruptcy.