Harrisburg owes $1.5 BILLION, plus millions lost in interest rate swaps

Last edited Tue May 29, 2012, 10:01 AM - Edit history (4)

http://www.pennlive.com/midstate/index.ssf/2012/05/harrisburgs_eye-popping_debt_t.html

Let's remember that most of these debt deals were done while a Republican was mayor.
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Meanwhile, the expert brought in as Receiver to try to clean up the debt mess has resigned. He said he resigned because the felt Corbett was about to fire him.

From David Unkovic's statement on why he quit as Harrisburg's court-appointed receiver:

"After my news conference of March 28, 2012, I was called into the Governor’s Office of General Counsel. Steve Aichele was adamant that I was no longer able to negotiate a settlement with the creditors, given my criticism of them and my call for an investigation of possible criminal activity in connection with the incinerator financings."

When "I offered to resign." Aichele "proposed that I might no longer be able to remain on as receiver," but instead take a state finance job "and continue to work on Harrisburg matters behind the scenes. I came away from that meeting believing I would be removed as receiver — and therefore decided to resign and leave state government at the same time."

http://www.philly.com/philly/blogs/inq-phillydeals/
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From a previous article on that same Inquirer blog:

"Unkovic told the court he'd been “put in a box” by creditors who convinced another state court judge to appoint a rival receiver to take control of the infamous incinerator whose multiple refinancings have left Harrisburg broke. That receiver "will be a tool of creditors, including Dauphin County and Assured Guaranty Municipal Corp.," according to Bloomberg.

"Unkovic quit March 30, two days after publicly calling for state and federal probes of more than $300 million worth of bond deals that is at the heart of Harrisburg’s insolvency."

More at this link:

http://www.philly.com/philly/columnists/joseph-distefano/20120527_PhillyDeals__Harrisburg_rsquo_s_ex-financial_custodian_Unkovic_describes_departure.html#ixzz1wAoypXU7