Seeking to stave off a state takeover of its beleaguered budget, the city of Harrisburg, Pa., filed for a rare Chapter 9 municipal bankruptcy on Wednesday.
Harrisburg, the Pennsylvania capital that previously defaulted on its debt, cited a “continued erosion of its finances,” in a resolution that was passed late Tuesday approving the bankruptcy.
According to Bloomberg News, Harrisburg listed liabilities of $500 million, compared with assets of $100 million. A clerk at the U.S. Bankruptcy Court for the Middle District of Pennsylvania confirmed receiving a physical copy of the filing.
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Meredith Whitney must be so wet right now.