HARRISBURG, PA., DEC. 1 (Reuters) - Pennsylvania
Governor Tom Corbett's administration on Thursday
pressed a state judge to approve a receiver for the financially
distressed state capital of Harrisburg.
Judge James R. Kelley did not announce if he would approve
David Unkovic, who has ties to several of the city's largest
creditors. Kelley has 30 days to act on the request.
Harrisburg, a city of 50,000 residents, has accumulated $317
million in debt largely because of the refinancing of upgrades
of a trash-to-steam incinerator. The City Council petitioned for
a Chapter 9 municipal bankruptcy in October but this filing was
rejected by the court in late November.
Most of the hearing focused on Unkovic's past relationships
with what now are Harrisburg creditors. Unkovic said he does not
have any financial interest with the companies involved and is
not being paid by nor does he work for any of the firms in
question.
His primary goal, he said, is "to bring the city back to a
good financial condition and to work respectfully with elected
city officials and stakeholders."
He also said he would turn to the court if he encounters any
potential conflict of interest as the city's receiver.
Unkovic worked for 27 years at the Saul Ewing law firm,
which is representing Assured Guarantee Municipal Corp. in its
fight to have Harrisburg pay what it owes on bond finance
deals related to the retrofit of the incinerator.
He also worked for three years with Cozen O'Connor, where he
was bond counsel on behalf of Dauphin County, another major
player in the incinerator project. Cozen O'Connor is
representing the Corbett administration in its petition to have
Unkovic named as Harrisburg's receiver.
An attorney for Harrisburg Mayor Linda Thompson, who did not
favor the city's bankruptcy filing, raised no objections to
Unkovic's qualifications.
(Reporting by Mark Shade)
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