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Creditors, bankrupt Alabama county in talks
Source: Reuters
Creditors, bankrupt Alabama county in talks
By Verna Gates and Michael Connor
Mon Jul 30, 2012 6:11pm EDT
(Reuters) - Alabama's Jefferson County and Wall Street creditors are finally in talks on possible workout terms eight months after the biggest U.S. municipal bankruptcy was filed for $4.23 billion, lawyers said on Monday.
In Chapter 9 bankruptcy since November 9, Jefferson County has the sole right to develop an adjustment plan that could include reductions of bonds and other debt. But U.S. Bankruptcy Judge Thomas Bennett must sign off on a plan.
Creditors on July 10 asked Bennett to set a September 28 deadline for the county to submit a plan, saying 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.
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By Verna Gates and Michael Connor
Mon Jul 30, 2012 6:11pm EDT
(Reuters) - Alabama's Jefferson County and Wall Street creditors are finally in talks on possible workout terms eight months after the biggest U.S. municipal bankruptcy was filed for $4.23 billion, lawyers said on Monday.
In Chapter 9 bankruptcy since November 9, Jefferson County has the sole right to develop an adjustment plan that could include reductions of bonds and other debt. But U.S. Bankruptcy Judge Thomas Bennett must sign off on a plan.
Creditors on July 10 asked Bennett to set a September 28 deadline for the county to submit a plan, saying 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.
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Read more: http://www.reuters.com/article/2012/07/30/us-usa-alabama-jeffersoncounty-idUSBRE86T1GQ20120730
