A press conference by Gov. Ed Rendell and Harrisburg Mayor Linda Thompson has been scheduled for tomorrow at which is expected to be announced a state-taxpayer backed plan to keep Pennsylvania’s capital from bankruptcy.
The beleaguered Democrat-controlled city has announced it will skip a $3.29 million bond payment scheduled for Sept. 15 to bond holders of Series 1997D and Series 1997F capital appreciation bonds.
The city, population 47,000, has been unwilling to take steps such as laying off city employees to deal with the fiscal crisis.
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.