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Financial firms sue Harrisburg over debt

HARRISBURG — Pennsylvania's financially troubled capital city is being sued over the massive debt on its trash incinerator that threatens to drag it into bankruptcy even as city leaders say they are trying to negotiate a way to repay it.

Financial firms in charge of administering and insuring the debt filed the lawsuits Monday. They came a day after Gov. Ed Rendell said he was speeding up payments, including pension aid, to ensure Harrisburg has enough cash to make a $3.3 million installment payment Wednesday on unrelated general obligation debt.

A spokesman for Mayor Linda Thompson said administration officials had not seen the suits, but described them as unnecessary given the city's commitment to meeting its obligations.

"We certainly think that any such action is both premature and doesn't solve the problem," spokesman Chuck Ardo said. "It requires the city to expend valuable resources to defend itself without producing a single dime that actually solves the problem."

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