Jefferson County Lawyer Says Creditors Threaten Talks
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Jefferson County, Alabama, may break off debt-reduction talks with hedge funds holding more than $700 million in defaulted sewer warrants because of the group’s litigation tactics, the county’s lead bankruptcy lawyers said.
Should the hedge funds try to question county commissioners under oath about settlement talks the county is holding with its major creditors, negotiations with the funds will end, attorney Kenneth Klee said in an interview. Yesterday, the hedge funds, who call themselves the ad hoc group of sewer warrant holders, won court permission to depose three commissioners about their efforts to end the county’s bankruptcy.