Article Comment 

Alabama county files plan to exit $4.2B bankruptcy


The Associated Press



BIRMINGHAM -- Attorneys for Alabama's Jefferson County have filed a 101-page plan that would allow it to exit the largest municipal bankruptcy in American history. 


The plan filed Sunday calls for cutting the county's $4.2 billion debt by more than $1.2 billion and raising sewer rates annually by 7.41 percent for four years. Rates would rise by 3.49 percent annually for an undetermined amount of years after that. 


Most of the $4.2 billion debt stems from bonds that funded sewer system repairs. 


The plan must be approved by creditors and ultimately Thomas Bennett, U.S. Bankruptcy Judge for the Northern District of Alabama. A hearing is scheduled for Aug. 6. 


Home to the state's largest city of Birmingham and more than 650,000 people, Jefferson County filed for bankruptcy in 2011 after three years of negotiations failed to result in a settlement to pay off the debt.




printer friendly version | back to top




Most Viewed News Stories


1. Gregory resigns from Partnership leadership position STARKVILLE & OKTIBBEHA COUNTY

2. Columbus police seek bank fraud suspect COLUMBUS & LOWNDES COUNTY

3. Are ghosts haunting the Golden Triangle? COLUMBUS & LOWNDES COUNTY

4. GSDP board silent on CEO resignation STARKVILLE & OKTIBBEHA COUNTY

5. Women entrepreneurs talk business COLUMBUS & LOWNDES COUNTY


More popular content      Suggest a story



Follow Us:

Follow Us on Facebook

Follow Us on Twitter

Follow Us via Email