Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Harrisburg Holds 'Wild West' Auction to Reduce Debt
Author: Joel R. Glucksman
Date: August 8, 2013
Key Contacts
Back
Harrisburg, Pennsylvania, has been struggling for years to unload its heavy municipal debt and repair its broken economy. The city attempted to file for bankruptcy protection in 2011, but the court dismissed its request, leaving the debt-saddled state capital with few avenues for alleviating its financial woes. Now, the city is trying a new creative strategy in order to reduce debt costs and avoid the tedious bankruptcy road: an auction.
The city announced its plans to hold a “Wild West” bankruptcy auction, during which it plans to sell thousands of its historic artifacts, replicas, and even gift shop memorabilia to raise money and pay its creditors. The inventory ranges from hundreds of antique guns, furniture from saloons and brothels, Native American clothing, weapons from the Revolutionary War, and other coveted assets. Top inventory items also include Buffalo Bill’s pipe, an arrest warrant for Jesse James, a letter written by Billy the Kid, and Annie Oakley’s jewel box.
Former mayor Stephen Reed, who served from 1981 to 2009, spent years amassing the historical artifacts in the hopes of opening museums across the state and attracting tourists. When his plan failed, the items ended up sitting idle in a facility for years.
Proceeds from the auction will go toward the city’s $300 million debt balance, which it accrued after a sour investment it made nearly 10 years ago, CNN Money reports. Harrisburg purchased twin incinerators in the hopes that it could earn fee revenue from picking up trash in neighboring municipalities. After the deal failed, however, the city was left struggling to repay creditors.
Auctioneer Joanne Grant recently told Pennsylvania newspaper Morning Call that nearly 7,000 individuals have already signed up on the city’s website to bid for the assets. Thousands more are expected to arrive at warehouses to bid in person.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.