Harrisburg City To Skip Bond Payment

Pennsylvania’s capital is going to skip a $3.3 million payment due Sept. 15  to bondholders of Series 1997D and Series 1997F capital appreciation bonds.

This borrowing is not related to $288 million in renovations of the Harrisburg incinerator plant for which Harrisburg City is on the hook for $68.7 million.

Harrisburg, population  47,000, is controlled by Democrats and has been unwilling to take steps such as laying off city employees to deal with the fiscal crisis.

Harrisburg missed $3.5 million in debt obligations last year.

Ambac Assurance Corp., insurer of the 1997 general obligation bonds, has announced that it will meet payments to investors. Its parent company, however, Ambac Financial Group of Wisconsin, has warned that it may seek bankruptcy protection as early as next year.

Moody’s Investors Service no longer rates Harrisburg.

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