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Harrisburg receiver will skip another debt service payment

- Last modified: March 12, 2013 at 12:03 PM

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.

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