Harrisburg receiver will skip another debt service payment
For the third time in a year, Harrisburg's receiver has decided not to make the city's general obligation debt service payment.
Receiver William Lynch’s office announced late Monday that he wants to skip a $5.2 million payment due Friday.
Lynch opted to forgo a payment in September; his predeccesor, David Unkovic, skipped one last March.
“The decision to withhold payment was made to maintain sufficient cash-flow to provide vital and necessary services,” the Office of the Receiver said in an emailed statement.
The payments that will not be made include $2.7 million and $2.5 million due on two city general obligation refunding bonds, Series D and Series F of 1997. The payment of principal and interest on such bonds and notes is insured by Ambac Assurance Corp.
The city has more than $340 million of incinerator debt related to financing of a retrofit project. Harrisburg also has been dealing with severe sinkhole problems.