Reuters: Bankruptcy News: Harrisburg, Pa. moves closer to sale of city incinerator

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Harrisburg, Pa. moves closer to sale of city incinerator Mar 21st 2012, 06:00 By Mark Shade HARRISBURG, Pa., March 21 | Wed Mar 21, 2012 2:00am EDT HARRISBURG, Pa., March 21 (Reuters) - The state-appointed receiver for Harrisburg, Pennsylvania moved a step closer to determining the price tag of the city's major assets by winnowing the list of interested applicants. The capital city is more than $317 million in debt because of expensive repairs to its trash incinerator. To help the city bridge its way out of that liability, receiver David Unkovic asked companies to submit qualifications to be considered for the sale or lease of its incinerator, parking garages, and waste water treatment facility. The money raised in the sale or lease of the assets will be used by Unkovic to complete the second phase of his recovery plan. The first part of his 194-page plan was approved by Commonwealth Court this month. The four companies qualified as possible buyers of the incinerator: Cambridge Project Development Inc. of Miami, Interstate Waste Services of Ramsey, N.J.; Lancaster County Solid Waste Management Authority of Lancaster, PA; and Wheelabrator Technologies Inc. of Hampton, N.H. Fourteen companies turned in quote requests for the sale or lease of Harrisburg's parking garages, with a dozen companies accepted as qualified bidders. Many are based in Pennsylvania or nearby New York state, but one, QIC Private Capital Pty Limited, is based in Australia. Several firms qualified to bid on Harrisburg's water, wastewater and stormwater systems. The firms deemed qualified include Aqua America, CH2M HILL, Pennsylvania American Water, and United Water Environmental Services/Kohlberg Kravis Roberts & Co. LP. When he introduced part one of the city's recovery plan, Unkovic said he said he would not be able to complete his plan until he determines the value of Harrisburg's assets. "It is anticipated that the proceeds from any sale of the incinerator would be applied to pay debt related to the incinerator," Unkovic said. Sales from the parking assets would first be used to pay the existing debt of the Harrisburg Parking Authority. What remains "could potentially be used to pay a portion of the incinerator debt and to contribute over time to address a portion of the city's structural deficit," he wrote. Unkovic said he would submit the second half of his proposal once he determines the value of the city's assets. He intends to finalize the three deals in June. (Reporting By Mark Shade; Editing by Ramya Venugopal) Link this Share this Digg this Email Reprints

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