From the FINANCIAL TIMES:
A federal judge on Wednesday threw out the bankruptcy filing of Harrisburg, Pennsylvania, delighting the state and the US municipal bond market but potentially discouraging other US cities from using bankruptcy to solve their financial problems.
Judge Mary France ruled that a group of city council members lacked the appropriate authority when they filed a bankruptcy petition for Harrisburg, the capital of Pennsylvania, last month. The state and Linda Thompson, the mayor, argued that the filing violated state and local laws. The city council group will decide whether to appeal.
The ruling paved the way for the state to take over Harrisburg with the planned appointment of a receiver to oversee efforts to return Harrisburg to financial health…
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