Councilwoman wants Pa. city bankruptcy explored

HARRISBURG, Pa.

A member of Harrisburg's city council says Pennsylvania's capital needs to seriously consider filing for bankruptcy in the face of hefty debt payments.

At a council meeting Thursday, councilwoman Patty Kim said she's forming an ad hoc committee to search for a lawyer that could advise the council on municipal bankruptcy.

The city faces an estimated $288 million in debt related to an incinerator upgrade project.

City Controller Dan Miller says lenders for the project have been unwilling to negotiate interest and principle reductions. He says exploring bankruptcy could make lenders to reconsider.

On Monday, the city told bond trustees it would miss a $3.3 million payment this month on general debt obligations not related to the incinerator project.