Nation’s Largest Municipal Bankruptcy Narrowly Averted
April 6th, 2008Via: Birmingham News:
The Jefferson County Commission on Monday narrowly averted defaulting on a $53 million sewer debt payment to Wall Street banks when two of four commissioners voted for a proposal to delay the full payment until mid-April.
The commission voted 2-1, with one abstention, to make a $4 million interest-only payment to the banks under an agreement reached last week. A majority was needed to approve.
Commissioners Jim Carns and Bobby Humphryes voted for the agreement, which is meant to stave off the possibility of the nation’s largest municipal bankruptcy.
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