http://www.bloomberg.com/news/2013-06-04/jefferson-county-reaches-deal-with-creditors-on-bankruptcy-exit.html
Jefferson County, Alabama (BEESAL), reached an agreement to pay its largest creditors $1.84 billion, or 60 percent of what they’re owed, as part of a plan to end the biggest U.S. municipal bankruptcy by the end of the year.
JPMorgan Chase & Co (JPM)., seven hedge funds and a group of bond insurers agreed to the deal, Kenneth Klee, an attorney for Jefferson County, said today at a county commission meeting in Birmingham. Together, those parties hold about $2.4 billion, or about 78 percent, of the county’s sewer debt.
JPMorgan (JPM), which holds $1.22 billion of debt, will forgive $842 million. Under the current deal and a previous settlement, the bank will have either paid the county, or given up the right to collect, $1.574 billion dollars.
The settlement ends more than 18 months of bankruptcy court battles between the country and its biggest creditors over how much the jurisdiction can afford to pay on more than $3 billion it borrowed to expand and improve the county’s sewage system.
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