HARRISBURG, Pa. , Nov 18 (Reuters) - A lawyer with ties to creditors owed money by Harrisburg, Pennsylvania's bankrupt capital, has been named to guide the city out of its $317 million debt.

Pennsylvania Governor Tom Corbett picked David Unkovic as receiver for Harrisburg, in a petition filed Friday with Commonwealth Court.

Unkovic, a public finance specialist and a graduate of the Harvard School of Law, has been chief counsel for Pennsylvania's Department of Community and Economic Development since July.

Before that, he worked at Cozen O'Connor for three years, PFM Asset Management for one year, and law firm Saul Ewing for 27 years.

Unkovic said he served as bond counsel for Dauphin County, one of Harrisburg's four largest creditors, while working with Cozen O'Connor. Saul Ewing now represents insurer Assured Guarantee Municipal Corp, the city's largest creditor.

Unkovic said Saul Ewing started representing Assured Guarantee after he left the firm.

He pledged professionalism and said he believes a fair plan will ultimately be adopted.

"I work for the state and I am going to pursue this with great determination to come up with the best possible plan for the city," he said.

Harrisburg filed for bankruptcy last month after the city council approved the filing in a 4-3 vote. The city's mayor, Linda Thompson, has challenged the legality of the filing. A hearing is to be held Nov. 23.

Corbett petitioned the court to appoint Unkovic because Harrisburg's mayor and the city council missed a final deadline on Nov. 14 to come up with an agreement with creditors.

"The city's failure to come to an agreement on an acceptable recovery plan has forced the commonwealth to take this action," Corbett said in a statement.

The city of 50,000 is in debt largely because of the refinancing of expensive repairs and upgrades of its trash-to-steam incinerator.

Unkovic said he does not consider the latest chapter as a takeover but an opportunity to accomplish what has so far been an unattainable goal.

"We have to view this as a new start. There have been lots of tensions in the city because it's been a difficult situation to deal with. But the truth is we need a plan as soon as we can, with as much input as we can," he said.

Despite the need for speed, it is possible a new plan might not be ready until May 2012.

Philadelphia attorney Mark Schwartz, who is representing the city council in the bankruptcy proceedings, said Corbett is "heading in the wrong direction."

"I don't think Harrisburg's receiver, by training, background or allegiance, is going to put the interest of the citizens of Harrisburg over creditors," Schwartz said. "I don't think he'll be calling me to ask me to sue those who were involved in the bond issue. I just don't think that will be happening."

He added: "A friend said it best, 'Looks like Harrisburg is going to have to pay for its own executioner.'

(Reporting by Mark Shade)

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