Creditors, Bankrupt Alabama County in Talks
Alabama's Jefferson County and Wall Street creditors are in talks on possible workout terms eight months after the biggest U.S. municipal bankruptcy was filed for $4.23 billion, Reuters reported yesterday. Jefferson County, which filed for chapter 9 on Nov. 9, has the sole right to develop an adjustment plan that could include reductions of bonds and other debt, but Bankruptcy Judge Thomas Bennett must sign off on a plan. Creditors on July 10 asked Judge Bennett to set a Sept. 28 deadline for the county to submit a plan, saying that the local government was dragging its heels on preparing a workout plan. However, the county claims that it may need longer to come out with a complete plan, partly because officials are working on possibly changing sewer-usage fees that cover operating costs and payments to the creditors.