Philadelphia Hopes to Raise Cash Next Week From Lenders
Philadelphia missed a self-imposed deadline Friday for solving its cash crunch, but the city treasurer said he expects a deal to be ready by next week.
Several parties interested in lending money have declined to commit themselves, pending the resolution of such issues as fiscal reform and who gets repaid first, city Treasurer Benjamin Blakney said.
The city intends to sell about $300 million in short-term notes to banks, two pension boards and the investment firm Merrill Lynch to avoid going broke before major tax payments come due in February and March.
A $375-million note issue collapsed in September amid worries about the city’s fiscal condition. Bond-rating agencies have dropped Philadelphia’s credit rating this year to the lowest among major U.S. cities.
Unless it receives a cash infusion, the city has warned that it will not be able to meet its payroll for city workers as early as Dec. 28.
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