Ala. County Floats Truce To $3.2B Bond Standoff

Law360, New York (August 8, 2011, 7:04 PM EDT) -- Commissioners for Jefferson County, Ala., reportedly submitted a counteroffer to bondholders on Friday to refinance roughly $3.2 billion debt and stave off what could be the largest municipal bankruptcy on record.

The county commission has postponed voting on a chapter 9 filing until the week’s end as its feels out a truce with Wall Street banks and other bondholders that financed an overhaul of the county’s crumbling sewer system a decade ago, a project ultimately mired in corruption and failed derivatives transactions.

Having mulled a proposal...
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