(New York) -- An expert on government debt and reorganization says a state takeover of Harrisburg will likely trump the city's bankruptcy protection filing. Bill Brandt is the President and CEO of Development Specialists, Incorporated, a Chicago-headquartered firm that specializes in turnaround assistance to troubled organizations. He also chairs the Illinois Finance Authority, which issues bonds to municipalities. Brandt says he's been keeping an eye on Harrisburg's debt crisis and expects the city's controversial bankruptcy case to be dismissed. "To file a Chapter 9, there's a whole series of checklist items you have to go through from top to bottom. One of the most elemental is 'are you eligible to be a debtor?' And I frankly think, under Pennsylvania law, Harrisburg is not," Brandt says. He says whomever might be appointed by Governor Corbett to control Harrisburg's finances would have more power than a bankruptcy judge to affect the city's structure and operations. Harrisburg's bankruptcy hearing is scheduled for next Wednesday.
Brandt also tells witf Morning Edition Host Craig Layne he doubts Harrisburg can legally file for bankruptcy...
Brandt talks about the differences between a bankruptcy judge and a state receiver when it comes to control of the city's finances...
Brandt says voters, not courts, have the final say when it comes to breaking political gridlock like the situation in Harrisburg...
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