Jefferson County Deal to Avert Bankruptcy Hinges on Legislature
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Jefferson County, Alabama, which approved a deal with holders of $3.14 billion of its sewer debt, now needs action by state lawmakers to end a more than three-year saga that kept it on the brink of filing the biggest municipal bankruptcy in U.S. history.
The County Commission voted 4-1 yesterday to accept the terms of the agreement, which includes $1.1 billion in concessions from creditors. JPMorgan Chase & Co., which arranged most of the debt, would take the biggest loss. The terms also call for three annual sewer-rate increases of as much as 8.2 percent, followed by annual boosts of no more than 3.25 percent.