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Harrisburg Mayor Continues Push for Bankruptcy

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Harrisburg Mayor Linda Thompson said yesterday that she will fight for the city's ability to declare bankruptcy after June 30, Reuters reported yesterday. A state law that bars small Pennsylvania cities from filing for municipal bankruptcy is to expire at the end of June. That law led a bankruptcy judge in November to reject a filing by Harrisburg, the capital city. Municipal officials are following a state receiver's fiscal recovery plan in an effort to deal with at least $320 million of debt stemming from repairs to its trash incinerator. However, Thompson said that she will oppose any attempt to extend or reintroduce the bankruptcy ban. "We should reserve the right to petition for bankruptcy protection," Thompson said.