Harrisburg to Avoid Defaulting on Muni Bonds

Pennsylvania capital Harrisburg reached a deal on Sunday that would allow the city to avoid defaulting on $3.3 million.

Pennsylvania capital Harrisburg reached a deal on Sunday that would allow the city to avoid defaulting on $3.3 million of general-obligation municipal bonds, the city said. It received a $4.4 million grant from the state, expedited from later this year, so it could make its scheduled payments on its 1997 Series D and Series F bonds, according to Gov. Ed Rendell. Harrisburg will hire Chicago-based consultants Scott Balice Strategies to look at options for getting out of debt and becoming financially viable, including selling city assets such as municipal parking garages.