There is an 80 percent chance that Jefferson County, Alabama, officials will vote to file for Chapter 9 bankruptcy today, Commissioner Sandra Little Brown said before the panel was set to meet to consider the option.
A Chapter 9 filing by the county of 660,000 would be the largest in U.S. municipal history. Jefferson owes $3.14 billion on sewer bonds left from a failed refinancing that left it exposed to the 2008 financial crisis.
Last night, Little Brown, one of five county commissioners, had put the probability at “50-50.” She said her concern grew because of parts of the creditors’ settlement proposal that would require that the county end all lawsuits against banks and possibly criminal prosecutions.
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