#rptupdate

RPT-UPDATE 1-EU’s Vestager seeking details on Apple’s recent tax set-up (Repeats story first published on Nov 7, adds details) By Foo Yun Chee LISBON, Nov 7 (Reuters) - European Union regulators have asked iPhone maker Apple for details of its recent tax structure following last year’s order to pay back taxes of up to 13 billion euros ($15 billion) to Ireland, Europe’s anti-trust chief said on Tuesday.

* Juniac to run French unit, seen as CEO successor* Air France-KLM shares rise on restructuring hopesBy Cyril Altmeyer and Tim HepherPARIS, Oct 17 (Reuters) - Air France-KLM SA ousted its chief executive on Monday and recalled the chief architects of the Franco-Dutch merger with a brief to eradicate losses while preparing for an anointed successor.Europe's largest airline by revenues, which has fallen behind peers due to a cocktail of costs, debts and competition, said after board talks that recovery and the improvement of performance would be its "top priority."The group said it postponed plans to reorganise into a full fledged holding company, with integrated divisions, from the beginning of 2012 until 2013 and restored its tried-and-tested old guard to run things in the interim.Jean-Cyril Spinetta will remain chairman and resume his previous role as chief executive, replacing Pierre-Henri Gourgeon who resigned from the post he had held since January 2009.Leo Van Wijk, who together with Air France's Spinetta masterminded the 2004 merger of French and Dutch carriers from the KLM side, will be deputy chief executive, the group said.The holding company move is seen as a necessary precursor to possible future acquisitions.Air France-KLM shares closed up 1.4 percent after rising 6 percent on newspaper leaks about the proposed board decision, which analysts said would speed up restructuring.Air France-KLM also put in place the man widely seen as most likely to become chief executive -- former defence executive Alexandre de Juniac, who has been appointed as the head of Air France, the most troubled and strike-prone part of the group.Juniac was a top aide to former French finance minister Christine Lagarde until her recent appointment as head of the International Monetary Fund and previously held senior posts at Thales SA , the state-controlled French arms group.The 48-year-old industrialist will submit directly to the board measures to boost the performance of the Air France unit and follow them up "over time," the group said in a statement.Air France-KLM set the pace for airline consolidation when the two flag carriers joined forces in 2004, merging key behind the scenes functions while keeping separate networks.But it has suffered more severely than much of the industry recently because of high labour costs, a large debt and from competition that has especially affected Air France.The group's shares have fallen almost 53 percent in the past six months, compared with a 26 percent decline for International Airlines Group (IAG) and a 35 percent drop at Lufthansa .Although many savings were made, analysts had expressed concerns about the profitability of Air France-KLM under Gourgeon, a former military engineer with fighter aircraft qualifications who failed to keep the airline in the black.Air France-KLM posted an operating loss of 145 million euros ($201 million) in April-June, compared with a profit of 230 million at Lufthansa and a 134 million-euro profit after exceptional items at IAG, parent of British Airways and Iberia.ELECTION PRESSUREAs the board deliberated Gourgeon's fate, it received a warning from one of France's largest unions. The CFDT stopped short of an immediate strike threat, but put the new management on notice it could quickly face turbulence over recent calls for substantial new savings.Analysts say restructuring could be difficult in the run-up to next year's French election, likely to be dominated by jobs."It looks as though the Spinetta-Juniac duo will be able to put in place the necessary restructuring measures that Gourgeon should have carried out years ago," a Paris-based analyst said, asking not to be named."On the other hand, doing this just a few months before (April-May) presidential elections will be difficult for such a symbolic company as Air France," the analyst added.Juniac was said to be restless at the finance ministry and he was linked to several unsuccessful bids to land top jobs.An ex-Thales colleague described his time in government as "two years of purgatory while waiting for a place in heaven.""He has a lot of expertise with international groups. He is charismatic and knows how to listen to people internally, lead and explain his strategy," the former colleague said.Juniac will need those qualities to handle the internal politics of Air France, whose cabin crews already plan strikes next weekend, the start of a 10-day break for French school children.He will also have to grapple with the airline's safety record after the 2009 Rio-Paris crash, which investigators attributed in part to a suspected pilot error. A final report on the crash, which killed 228 people, is expected next year.

* Juniac to run French unit, seen as CEO successor* Air France-KLM shares rise on restructuring hopesBy Cyril Altmeyer and Tim HepherPARIS, Oct 17 (Reuters) - Air France-KLM SA ousted its chief executive on Monday and recalled the chief architects of the Franco-Dutch merger with a brief to eradicate losses while preparing for an anointed successor.Europe's largest airline by revenues, which has fallen behind peers due to a cocktail of costs, debts and competition, said after board talks that recovery and the improvement of performance would be its "top priority."The group said it postponed plans to reorganise into a full fledged holding company, with integrated divisions, from the beginning of 2012 until 2013 and restored its tried-and-tested old guard to run things in the interim.Jean-Cyril Spinetta will remain chairman and resume his previous role as chief executive, replacing Pierre-Henri Gourgeon who resigned from the post he had held since January 2009.Leo Van Wijk, who together with Air France's Spinetta masterminded the 2004 merger of French and Dutch carriers from the KLM side, will be deputy chief executive, the group said.The holding company move is seen as a necessary precursor to possible future acquisitions.Air France-KLM shares closed up 1.4 percent after rising 6 percent on newspaper leaks about the proposed board decision, which analysts said would speed up restructuring.Air France-KLM also put in place the man widely seen as most likely to become chief executive -- former defence executive Alexandre de Juniac, who has been appointed as the head of Air France, the most troubled and strike-prone part of the group.Juniac was a top aide to former French finance minister Christine Lagarde until her recent appointment as head of the International Monetary Fund and previously held senior posts at Thales SA , the state-controlled French arms group.The 48-year-old industrialist will submit directly to the board measures to boost the performance of the Air France unit and follow them up "over time," the group said in a statement.Air France-KLM set the pace for airline consolidation when the two flag carriers joined forces in 2004, merging key behind the scenes functions while keeping separate networks.But it has suffered more severely than much of the industry recently because of high labour costs, a large debt and from competition that has especially affected Air France.The group's shares have fallen almost 53 percent in the past six months, compared with a 26 percent decline for International Airlines Group (IAG) and a 35 percent drop at Lufthansa .Although many savings were made, analysts had expressed concerns about the profitability of Air France-KLM under Gourgeon, a former military engineer with fighter aircraft qualifications who failed to keep the airline in the black.Air France-KLM posted an operating loss of 145 million euros ($201 million) in April-June, compared with a profit of 230 million at Lufthansa and a 134 million-euro profit after exceptional items at IAG, parent of British Airways and Iberia.ELECTION PRESSUREAs the board deliberated Gourgeon's fate, it received a warning from one of France's largest unions. The CFDT stopped short of an immediate strike threat, but put the new management on notice it could quickly face turbulence over recent calls for substantial new savings.Analysts say restructuring could be difficult in the run-up to next year's French election, likely to be dominated by jobs."It looks as though the Spinetta-Juniac duo will be able to put in place the necessary restructuring measures that Gourgeon should have carried out years ago," a Paris-based analyst said, asking not to be named."On the other hand, doing this just a few months before (April-May) presidential elections will be difficult for such a symbolic company as Air France," the analyst added.Juniac was said to be restless at the finance ministry and he was linked to several unsuccessful bids to land top jobs.An ex-Thales colleague described his time in government as "two years of purgatory while waiting for a place in heaven.""He has a lot of expertise with international groups. He is charismatic and knows how to listen to people internally, lead and explain his strategy," the former colleague said.Juniac will need those qualities to handle the internal politics of Air France, whose cabin crews already plan strikes next weekend, the start of a 10-day break for French school children.He will also have to grapple with the airline's safety record after the 2009 Rio-Paris crash, which investigators attributed in part to a suspected pilot error. A final report on the crash, which killed 228 people, is expected next year.

* Juniac to run French unit, seen as CEO successor* Air France-KLM shares rise on restructuring hopesBy Cyril Altmeyer and Tim HepherPARIS, Oct 17 (Reuters) - Air France-KLM SA ousted its chief executive on Monday and recalled the chief architects of the Franco-Dutch merger with a brief to eradicate losses while preparing for an anointed successor.Europe's largest airline by revenues, which has fallen behind peers due to a cocktail of costs, debts and competition, said after board talks that recovery and the improvement of performance would be its "top priority."The group said it postponed plans to reorganise into a full fledged holding company, with integrated divisions, from the beginning of 2012 until 2013 and restored its tried-and-tested old guard to run things in the interim.Jean-Cyril Spinetta will remain chairman and resume his previous role as chief executive, replacing Pierre-Henri Gourgeon who resigned from the post he had held since January 2009.Leo Van Wijk, who together with Air France's Spinetta masterminded the 2004 merger of French and Dutch carriers from the KLM side, will be deputy chief executive, the group said.The holding company move is seen as a necessary precursor to possible future acquisitions.Air France-KLM shares closed up 1.4 percent after rising 6 percent on newspaper leaks about the proposed board decision, which analysts said would speed up restructuring.Air France-KLM also put in place the man widely seen as most likely to become chief executive -- former defence executive Alexandre de Juniac, who has been appointed as the head of Air France, the most troubled and strike-prone part of the group.Juniac was a top aide to former French finance minister Christine Lagarde until her recent appointment as head of the International Monetary Fund and previously held senior posts at Thales SA , the state-controlled French arms group.The 48-year-old industrialist will submit directly to the board measures to boost the performance of the Air France unit and follow them up "over time," the group said in a statement.Air France-KLM set the pace for airline consolidation when the two flag carriers joined forces in 2004, merging key behind the scenes functions while keeping separate networks.But it has suffered more severely than much of the industry recently because of high labour costs, a large debt and from competition that has especially affected Air France.The group's shares have fallen almost 53 percent in the past six months, compared with a 26 percent decline for International Airlines Group (IAG) and a 35 percent drop at Lufthansa .Although many savings were made, analysts had expressed concerns about the profitability of Air France-KLM under Gourgeon, a former military engineer with fighter aircraft qualifications who failed to keep the airline in the black.Air France-KLM posted an operating loss of 145 million euros ($201 million) in April-June, compared with a profit of 230 million at Lufthansa and a 134 million-euro profit after exceptional items at IAG, parent of British Airways and Iberia.ELECTION PRESSUREAs the board deliberated Gourgeon's fate, it received a warning from one of France's largest unions. The CFDT stopped short of an immediate strike threat, but put the new management on notice it could quickly face turbulence over recent calls for substantial new savings.Analysts say restructuring could be difficult in the run-up to next year's French election, likely to be dominated by jobs."It looks as though the Spinetta-Juniac duo will be able to put in place the necessary restructuring measures that Gourgeon should have carried out years ago," a Paris-based analyst said, asking not to be named."On the other hand, doing this just a few months before (April-May) presidential elections will be difficult for such a symbolic company as Air France," the analyst added.Juniac was said to be restless at the finance ministry and he was linked to several unsuccessful bids to land top jobs.An ex-Thales colleague described his time in government as "two years of purgatory while waiting for a place in heaven.""He has a lot of expertise with international groups. He is charismatic and knows how to listen to people internally, lead and explain his strategy," the former colleague said.Juniac will need those qualities to handle the internal politics of Air France, whose cabin crews already plan strikes next weekend, the start of a 10-day break for French school children.He will also have to grapple with the airline's safety record after the 2009 Rio-Paris crash, which investigators attributed in part to a suspected pilot error. A final report on the crash, which killed 228 people, is expected next year.

* Main pipe taking concentrate to port was cut* Says supply lines to mine blockaded* Stock drops over 4 percentBy Olivia RondonuwuJAKARTA, Oct 17 (Reuters) - Freeport-McMoRan Copper & Gold halted production at its Grasberg mine in Indonesia on Monday because of security fears and worker blockades, in the worst supply disruption since a strike began a month ago.Freeport said the main pipe carrying copper concentrate to its port from Grasberg, the world's second-biggest copper mine, was cut earlier on Monday, helping copper prices to rise.It said it does not know who cut the pipeline and is still evaluating the impact on copper shipments from the remote mountain mine.Freeport's production has also been hit by a strike at a second mine, Cerro Verde in Peru, where the union pulled out of talks and members have threatened to go on a hunger strike to push demands for a raise.The news sent shares of the U.S. mining giant down 4.7 percent to $35.04 in morning trading on the New York Stock Exchange. The company is slated to report third-quarter earnings on Wednesday and analysts expect its profit to be lower ."The prolonged strike continues to burden the company, and with the recent events no immediate resolution to the situation is evident," said analyst Tony Rizzuto of Dahlman Rose & Co."Shares could be pressured in the near term while uncertainty surrounds its Grasberg operations," he said.At a news conference, Freeport Indonesia spokesman Ramdani Sirait said: "Production is completely cut because the main pipe has been cut and because of security concerns."A company source said the concentrate processing plant will be shut for 30 days, but the firm could not say how long it will take to fix the pipe or how long production or processing will be halted.The stoppage is a setback for the Freeport after it said last week it had ramped up copper concentrate output at Grasberg to average more than 4,000 tonnes per day by relying largely on non-unionized and contract workers, a move criticized by the government.The company said it had still managed to ship 103,189 tonnes of concentrate in the past week, though with blockades to the port and rising worker tension, it was unclear if further shipments can be made.Copper prices have mostly shrugged off the supply disruption during the strike that started on Sept. 15 because of worries about a weakening global economy.Copper pulled back from an earlier three-week high on Monday as supply-side concerns took a backseat to Europe's ongoing debt struggles.By 10:37 a.m. EDT (1437 GMT), the benchmark December COMEX contract in New York fell 2.20 cents at $3.3865 per pound -- down from an earlier-session peak at $3.46356, which marked its priciest level since Sept. 27.Road blockades, part of the prolonged strike by around 12,000 of the mine's 23,000 workers, have stopped containers carrying food and medicine from reaching the mine and jet fuel from reaching the nearest airport, the company said."Logistics needed for production and activities in the highlands have been held at the port," said Sirait. "There are hundreds and hundreds of containers now piling up at the port."The union said the blockades and damage to facilities such as a bus terminal occurred because workers were angered by the death of a colleague following a clash with police last week, as well as because of the company's "apathy" to worker demands."This is a result of unstoppable emotion of the people who were angered by the death of a worker. The union can't do anything about this," said union spokesman Juli Parorrongan.Parorrongan said the union had no information on who cut the pipeline, which the company called "sabotage", and will check who was behind it.INDEPENDENCE MOVEMENTRebels in the eastern province of Papua have waged a low-level insurgency against the government for four decades, and previously threatened to blockade the mine after police killed a separatist in an attack in late 2009.Three men were killed in a shooting last week near the mine in Papua, though it was not clear if this was linked to the pay dispute or to the independence movement.A clash earlier last week between striking workers and police near the mine led to the death of two protesters -- one of whom was a member of an indigenous tribe -- and injured others, as disgruntled and striking Grasberg workers protested after being barred from collecting belongings from barracks.A Reuters witness said indigenous people carrying arrows and spears were joining workers near the blockades on Monday.

* Main pipe taking concentrate to port was cut* Says supply lines to mine blockaded* Stock drops over 4 percentBy Olivia RondonuwuJAKARTA, Oct 17 (Reuters) - Freeport-McMoRan Copper & Gold halted production at its Grasberg mine in Indonesia on Monday because of security fears and worker blockades, in the worst supply disruption since a strike began a month ago.Freeport said the main pipe carrying copper concentrate to its port from Grasberg, the world's second-biggest copper mine, was cut earlier on Monday, helping copper prices to rise.It said it does not know who cut the pipeline and is still evaluating the impact on copper shipments from the remote mountain mine.Freeport's production has also been hit by a strike at a second mine, Cerro Verde in Peru, where the union pulled out of talks and members have threatened to go on a hunger strike to push demands for a raise.The news sent shares of the U.S. mining giant down 4.7 percent to $35.04 in morning trading on the New York Stock Exchange. The company is slated to report third-quarter earnings on Wednesday and analysts expect its profit to be lower ."The prolonged strike continues to burden the company, and with the recent events no immediate resolution to the situation is evident," said analyst Tony Rizzuto of Dahlman Rose & Co."Shares could be pressured in the near term while uncertainty surrounds its Grasberg operations," he said.At a news conference, Freeport Indonesia spokesman Ramdani Sirait said: "Production is completely cut because the main pipe has been cut and because of security concerns."A company source said the concentrate processing plant will be shut for 30 days, but the firm could not say how long it will take to fix the pipe or how long production or processing will be halted.The stoppage is a setback for the Freeport after it said last week it had ramped up copper concentrate output at Grasberg to average more than 4,000 tonnes per day by relying largely on non-unionized and contract workers, a move criticized by the government.The company said it had still managed to ship 103,189 tonnes of concentrate in the past week, though with blockades to the port and rising worker tension, it was unclear if further shipments can be made.Copper prices have mostly shrugged off the supply disruption during the strike that started on Sept. 15 because of worries about a weakening global economy.Copper pulled back from an earlier three-week high on Monday as supply-side concerns took a backseat to Europe's ongoing debt struggles.By 10:37 a.m. EDT (1437 GMT), the benchmark December COMEX contract in New York fell 2.20 cents at $3.3865 per pound -- down from an earlier-session peak at $3.46356, which marked its priciest level since Sept. 27.Road blockades, part of the prolonged strike by around 12,000 of the mine's 23,000 workers, have stopped containers carrying food and medicine from reaching the mine and jet fuel from reaching the nearest airport, the company said."Logistics needed for production and activities in the highlands have been held at the port," said Sirait. "There are hundreds and hundreds of containers now piling up at the port."The union said the blockades and damage to facilities such as a bus terminal occurred because workers were angered by the death of a colleague following a clash with police last week, as well as because of the company's "apathy" to worker demands."This is a result of unstoppable emotion of the people who were angered by the death of a worker. The union can't do anything about this," said union spokesman Juli Parorrongan.Parorrongan said the union had no information on who cut the pipeline, which the company called "sabotage", and will check who was behind it.INDEPENDENCE MOVEMENTRebels in the eastern province of Papua have waged a low-level insurgency against the government for four decades, and previously threatened to blockade the mine after police killed a separatist in an attack in late 2009.Three men were killed in a shooting last week near the mine in Papua, though it was not clear if this was linked to the pay dispute or to the independence movement.A clash earlier last week between striking workers and police near the mine led to the death of two protesters -- one of whom was a member of an indigenous tribe -- and injured others, as disgruntled and striking Grasberg workers protested after being barred from collecting belongings from barracks.A Reuters witness said indigenous people carrying arrows and spears were joining workers near the blockades on Monday.

* Main pipe taking concentrate to port was cut* Says supply lines to mine blockaded* Stock drops over 4 percentBy Olivia RondonuwuJAKARTA, Oct 17 (Reuters) - Freeport-McMoRan Copper & Gold halted production at its Grasberg mine in Indonesia on Monday because of security fears and worker blockades, in the worst supply disruption since a strike began a month ago.Freeport said the main pipe carrying copper concentrate to its port from Grasberg, the world's second-biggest copper mine, was cut earlier on Monday, helping copper prices to rise.It said it does not know who cut the pipeline and is still evaluating the impact on copper shipments from the remote mountain mine.Freeport's production has also been hit by a strike at a second mine, Cerro Verde in Peru, where the union pulled out of talks and members have threatened to go on a hunger strike to push demands for a raise.The news sent shares of the U.S. mining giant down 4.7 percent to $35.04 in morning trading on the New York Stock Exchange. The company is slated to report third-quarter earnings on Wednesday and analysts expect its profit to be lower ."The prolonged strike continues to burden the company, and with the recent events no immediate resolution to the situation is evident," said analyst Tony Rizzuto of Dahlman Rose & Co."Shares could be pressured in the near term while uncertainty surrounds its Grasberg operations," he said.At a news conference, Freeport Indonesia spokesman Ramdani Sirait said: "Production is completely cut because the main pipe has been cut and because of security concerns."A company source said the concentrate processing plant will be shut for 30 days, but the firm could not say how long it will take to fix the pipe or how long production or processing will be halted.The stoppage is a setback for the Freeport after it said last week it had ramped up copper concentrate output at Grasberg to average more than 4,000 tonnes per day by relying largely on non-unionized and contract workers, a move criticized by the government.The company said it had still managed to ship 103,189 tonnes of concentrate in the past week, though with blockades to the port and rising worker tension, it was unclear if further shipments can be made.Copper prices have mostly shrugged off the supply disruption during the strike that started on Sept. 15 because of worries about a weakening global economy.Copper pulled back from an earlier three-week high on Monday as supply-side concerns took a backseat to Europe's ongoing debt struggles.By 10:37 a.m. EDT (1437 GMT), the benchmark December COMEX contract in New York fell 2.20 cents at $3.3865 per pound -- down from an earlier-session peak at $3.46356, which marked its priciest level since Sept. 27.Road blockades, part of the prolonged strike by around 12,000 of the mine's 23,000 workers, have stopped containers carrying food and medicine from reaching the mine and jet fuel from reaching the nearest airport, the company said."Logistics needed for production and activities in the highlands have been held at the port," said Sirait. "There are hundreds and hundreds of containers now piling up at the port."The union said the blockades and damage to facilities such as a bus terminal occurred because workers were angered by the death of a colleague following a clash with police last week, as well as because of the company's "apathy" to worker demands."This is a result of unstoppable emotion of the people who were angered by the death of a worker. The union can't do anything about this," said union spokesman Juli Parorrongan.Parorrongan said the union had no information on who cut the pipeline, which the company called "sabotage", and will check who was behind it.INDEPENDENCE MOVEMENTRebels in the eastern province of Papua have waged a low-level insurgency against the government for four decades, and previously threatened to blockade the mine after police killed a separatist in an attack in late 2009.Three men were killed in a shooting last week near the mine in Papua, though it was not clear if this was linked to the pay dispute or to the independence movement.A clash earlier last week between striking workers and police near the mine led to the death of two protesters -- one of whom was a member of an indigenous tribe -- and injured others, as disgruntled and striking Grasberg workers protested after being barred from collecting belongings from barracks.A Reuters witness said indigenous people carrying arrows and spears were joining workers near the blockades on Monday.

* Legal fight could involve county, bondholders* Other cities, counties have had filings dismissedBy David GaffenNEW YORK, Oct 13 (Reuters) - The lawyer for Harrisburg, Pennsylvania rejected allegations on Thursday that its bankruptcy filing was illegal in the face of threatened legal and legislative challenges.One day after Pennsylvania's state capital filed for bankruptcy, Mark Schwartz, attorney for the city council, told Reuters Insider the Chapter 9 filing was "absolutely" legal.That followed comments by the mayor and county that the council did not have the authority to take such a step.Harrisburg is one of a handful of municipalities that has flirted with bankruptcy in the wake of the Great Recession that devastated budgets in state and local communities. Some say it could become a touchstone for whether other cities will follow this path to extract concessions from creditors and others."We're trying to advocate to use the leverage of bankruptcy," said Dan Miller, Harrisburg City Controller.But legal experts say this is a complicated process as states in recent years have erected higher walls for local governments to overcome if they seek bankruptcy. One in four Chapter 9 municipal bankruptcies are dismissed, according to a legal expert.Several entities, including the county, state, and bondholders, are expected to contest the filing.Thursday, Charles Zwally, special council for Dauphin County, where Harrisburg is located, said the county is weighing its options."We're reviewing it now and we're advising the county...We don't believe that they are authorized to file," he said.The Pennsylvania capital's crisis has been a year in the making. The city of about 50,000 is hampered by $300 million in debt incurred from an expensive revamp of its incinerator and is struggling to fund key city services.Less than half of U.S. states authorize a city or county to undertake such a move, and states have been making it harder to file.A law passed in Pennsylvania earlier in the year prohibits the city from filing for bankruptcy until 2012.Glen Grell, a Republican member of the state's house of representatives for the 87th district said the "bankruptcy petition that was filed is not authorized by state law as it's required to be.""It's horrible for any municipality, especially the state capital of Pennsylvania, to attempt to walk away from its creditors," he said. The state Senate is expected to vote next week on a bill that calls for an eventual takeover of Harrisburg.Schwartz called the legislation's language "deplorable, incomprehensible and illegal."Juliet Moringiello, a professor at Widner School of Law in Harrisburg, said the state's authority is in question. The state's law says municipalities can file for bankruptcy, but it changed its law to stipulate that third-class cities -- of which Harrisburg is one -- cannot file for a year."The problem is that the law was aimed at Harrisburg. The question the city lawyer is raising is, 'Was that constitutional?"ONE IN FOUR DISMISSEDIn 1991, Bridgeport, Connecticut filed but the case was dismissed as the city could not prove it was unable to pay its debts."One of the issues is, is the municipality insolvent? Do the assets exceed the liabilities? That's why Bridgeport failed," said Richard Zeisler of Zeisler & Zeisler PC of Bridgeport, who represented that city in its unsuccessful case.Jim Spiotto, a municipal bankruptcy expert at the law firm of Chapman and Cutler, told Reuters Insider on Wednesday one in four bankruptcies wind up "having it being dismissed or closed without a plan." He said Harrisburg's bankruptcy "could" be dismissed.Bond insurer Assured Guaranty and the mayor questioned the legality of the filing, which the Harrisburg City Council approved in a 4-3 vote late on Tuesday, but Schwartz rejected that assessment."The council basically utilized that remedy, which was bankruptcy, and filed for it," he said.Thompson said Wednesday that the mayor and the city solicitor must sign off on all hiring of outside counsel and the city solicitor must approve all ordinances and resolutions considered by the council, which was not done in this case, she said.The county is one of the most high-profile cities to use Chapter 9 of the U.S. bankruptcy code, most notably invoked nearly 20 years ago by Orange County, California.There have been only 629 municipal bankruptcies under Chapter 9 of the U.S. Bankruptcy Code since 1937, according to Spiotto.Pennsylvania Governor Tom Corbett has said the city would be better off if it agreed to a rescue plan under the state's Act 47 program for distressed cities -- which has seen Philadelphia and other cities through crises. His office opposes the bankruptcy."If you go through the Act 47 plan or the receiver legislation we're going through right now, the assets are sold and Wall Street gets paid 100 cents on the dollar. And we'll be left with no sources of income," said city councilman Brad Koplinski."So we're going to have to tax our citizens. Those who can leave -- will leave. Those who can't leave because of economic situations are those who can least afford to pay it."At the root of Harrisburg's troubles is a financing scheme used to fund a state-of-the-art revamp of its trash-burning plant that left the city deeply in debt.The incinerator is owned by the Harrisburg Authority, a separate municipal entity, but the city and the surrounding Dauphin County guarantee much of that debt. The state wants Harrisburg to sell major assets, cut jobs and renegotiate labor deals."This mess has been around for a long time," said Joe Church, a resident of Susquehanna Township, a suburb of Harrisburg. "The previous administration and the new administration are not fiscally capable."