Pennsylvania and municipal officials within the next two weeks could finalize a potential forbearance agreement regarding $282 million of Harrisburg Authority incinerator bonds that would give the city 90 days to craft a repayment plan.

The authority does not have sufficient operating revenue to repay the debt. It used debt-service reserve funds to meet a March 1 payment of  $2.2 million to bondholders and skipped an April 1 payment of $637,00 to Covanta Energy Inc., the plant’s operator, that would have repaid a $25.5 million project loan.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.