Schwartz, an attorney hired by the City Council. A spokesman for Mayor Linda Thompson, who has resisted calls for bankruptcy because of fears that it would further blemish the city's name, said the council lacks the legal authority to seek it. Mayor vows fast for unity amid financial crisis. The filing was signed by Councilwoman Susan Wilson after a vote late Tuesday by the council to authorize it.
At a news conference, Thompson said she was hiring a law firm to challenge the bankruptcy filing, which she called a "sneak attack" by council members. The legal move comes the week before the state Senate is expected to take up a bill, already passed by the House, that would authorize Gov.
Tom Corbett to assume many of the city's financial functions in response to the stalemate between Thompson and the council majority. The bill would empower the governor to declare a state of fiscal emergency and install someone to make many of the critical decisions about government spending and operations. Schwartz called the pending bill "a political grab" and said it was designed to protect bond insurers. Under the state's proposed takeover, city council members would keep their positions but couldn't contradict a governor-appointed receiver's recovery plan.
Mayor Linda Thompson, who opposes bankruptcy, said Wednesday that she was "ashamed" of city council members who voted for the filing and blamed "petty politics' for the standoff. But some residents are happy the city council took some action, after a months-long standoff with the mayor and despite the stigma attached to bankruptcy.
I just want to see us get out of this mire. Write to Michael Corkery at michael. All Rights Reserved. Skip to Main Content Skip to Search. News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services.
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