Jefferson County Alabama Files Biggest Municipal Bankruptcy

Written on by V2A, Filed under
Business, Economics, Government
 12


Jefferson County, Alabama, filed the biggest U.S. municipal bankruptcy after an agreement among elected officials and investors to refinance $3.1 billion in sewer bonds fell apart.

The county, home to Birmingham, the state’s most-populous city, listed assets and debt of more than $1 billion in Chapter 9 papers filed today in U.S. Bankruptcy Court in Birmingham.

The county’s bankruptcy attorney, Kenneth Klee, said the filing was necessary because talks with creditors and the receiver in charge of the sewer system built by the bonds broke down.

“There was an impasse reached,” Klee said in an interview today. “None of the creditors — zero — signed up to the deal that we have been negotiating for six weeks.”

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  • Wayne

    And they shouldn't have to accept or sign any deal where they get screwed by inept public officials and their unionized employees. The public needs to stand their local government in the middle of a courtroom and get some answers.

  • Marine101

    The socialists are licking their chops.

  • Jonathan Gartner

    You think that is bad??? Wait until California declares bankruptcy the Unions will go beserk the rest of us will be laughing

  • dntmkmecomoverther

    Get ready for filings like this all over the country; union deadbeats and thugs have ‘had their way’ with the public sector managers; now they have hit rock bottom. The trough is empty you bunch of union swine; it’s time to ‘thin the herd’. I can’t wait to watch them squirm.

    • OLD DAD

      yOU ARE ABSOLUTELY CORRECT AND IT WILL BE A PLEASURE TO WATCH. THE ONLY PROBLEM IS THAT THOSE LEFT WILL PROBABLY BE THE LEAST PRODUCTIVE FLUNKIES AND FRIENDS OF THE POWERS THAT BE. AND THE UNIONS RESPONSIBLE WILL STILL SURVIVE.

  • ladykroft

    Yeah, and Ohio voted last night to give the unions free rein for collective bargaining…unless the polls were rigged again, so you know what that means come November 2012. If obama was to win again in 2012 America would definitely need a revolution, 'cause there ain't no way this country could survive an other 4 years of crapola.

  • guest on this planet

    Prison time for the pay offs

  • Hoss

    Actually, the biggest reason for Jefferson County's debt problem is currently serving time in jail. I live about 60 miles from Jefferson county and hate the way the current administration refuses to accept responsibility for the problems they were elected to solve.

  • Stephen Russell

    Now lets see the County, Wash DC is in Go broke.
    Or NYC County?
    SF CA Marin Cty?
    Awesome.
    Big Govt NOT at work.

  • john sanders

    Too many people in government jobs that get better pay and benefits than the typical private sector worker…this is unsustainable

  • wportier

    What happen to a balance budget??? I am under the impression that all city and county have to operate on a balance . They must have had too many obama as there officials

  • http://filingmadesimple.com/Bankruptcy-Filing-Made-Simple-Book-Detail.php?state=1 alabama bankruptcy

    Ted Connolly is a lawyer in the Boston office of a large, international law firm, where he concentrates his legal practice in bankruptcy and finance law.

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