Alabama county files largest municipal bankruptcy
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Pastor Dale Morgan
Nov 9, 2011, 8:30:10 PM11/9/11
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Perilous Times
Nov 09, 2011
Alabama county files largest municipal bankruptcy
By Michael Winter, USA TODAY
The elected leaders of Jefferson County, Ala., have voted to file the nation's largest bankruptcy because of more than $3 billion debt from sewer bonds.
As The Birmingham News explains, county officials have been trying to negotiate with creditors, primarily Wall Street banks, since the nation's financial crisis began in 2008.
Reflecting a smaller version of Italy's debt crisis, interest rates spiked and the county couldn't pay bondholders. A provisional settlement in September included $1.1 billion in concessions and called for sewer-rate increases of up to 8.2% for the first three years, Bloomberg notes. JPMorgan Chase, which arranged financing for sewer upgrades, will likely take the biggest hit among creditors.
Nov 09, 2011
Alabama county files largest municipal bankruptcy
By Michael Winter, USA TODAY
The elected leaders of Jefferson County, Ala., have voted to file the nation's largest bankruptcy because of more than $3 billion debt from sewer bonds.
As The Birmingham News explains, county officials have been trying to negotiate with creditors, primarily Wall Street banks, since the nation's financial crisis began in 2008.
Reflecting a smaller version of Italy's debt crisis, interest rates spiked and the county couldn't pay bondholders. A provisional settlement in September included $1.1 billion in concessions and called for sewer-rate increases of up to 8.2% for the first three years, Bloomberg notes. JPMorgan Chase, which arranged financing for sewer upgrades, will likely take the biggest hit among creditors.
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