Jefferson County Debt Deal May Let Bankruptcy Case Return
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To shed more than $1.4 billion in debt, Jefferson County, Alabama agreed to give up some of its power to set future sewer rates, a compromise that means the second-biggest U.S. municipal bankruptcy might be brought back to life decades from now.
U.S. Bankruptcy Judge Thomas Bennett yesterday approved the county’s debt-adjustment plan, which was built on a settlement with JPMorgan Chase & Co. and other creditors. That deal requires the bankruptcy court to retain authority over the county until almost $1.8 billion in new sewer debt is paid off in 40 years.