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Alabama county nears becoming largest municipal bankruptcy ever
Posted: Aug 12, 2011 6:06 PM by Matt Stafford
BIRMINGHAM, Ala. (AP) - Leaders of Alabama's largest county have rejected a settlement with Wall Street to pay off more than $3.1 billion in debt.
The unanimous Friday vote by five members of the Jefferson County Commission again delays a decision on whether they need to file what would be the largest municipal bankruptcy ever.
The commission unanimously approved a resolution to give the commission president and finance chair until Sept. 16 to personally negotiate a deal with Wall Street.
Jefferson County has been trying to avoid filing bankruptcy over more than $3.1 billion in sewer system debt for three years. Its problems stem from a mix of outdated sewer pipes, the economy, court rulings and public corruption.
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