Jefferson County Stands Firm On Ch. 9 Eligibility

Law360, New York (December 13, 2011, 8:03 PM EST) -- Jefferson County, Ala., on Tuesday fought back against efforts by Bank of New York Mellon Corp. and others to dismiss its Chapter 9 petition, arguing that it was indeed authorized under state law to seek bankruptcy protection.

Grappling with more than $3 billion in sewer debt, the county's governing board voted Nov. 9 to file the largest municipal bankruptcy in U.S. history after settlement talks with creditors broke down.

On Friday, BNY Mellon, the indenture trustee for county sewer warrants, said Jefferson County lacked a particular...
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