BLOOMBERG: Morgan Stanley (MS), CBRE Global Investors and Guggenheim Partners LLC are among eight contenders to buy or lease the parking system of Harrisburg (9661MF), the insolvent Pennsylvania capital coping with more than $300 million in debt.
The city sought the bids as part of a court-approved plan to deal with obligations of more than five times its general-fund budget. The community backed financing for an overhaul of a municipal incinerator which doesn’t produce enough revenue to cover the cost of servicing the debt. The proposed sales or leases are designed to keep Harrisburg out of bankruptcy. …
The city has 10 garages, five surface lots and 1,250 metered spaces, which provide 72 percent of municipal parking. In 2010, the Harrisburg Parking Authority, which oversees the system, reported $13.8 million in revenue… (more)
EDITOR: How will depriving Harrisburg of revenue help it to overcome its fiscal mess? Instead of allowing creditors to consume all of its assets, why not allow it to enter bankruptcy rather than receivership? Gov. Tom Corbett didn’t resscue the Citiy from bankruptcy; he rescues the creditors! But what else would we expect from Corbett?
