Ala. County Wins Court Approval For Largest-Ever Ch. 9

Law360, New York (March 5, 2012, 2:50 PM EST) -- An Alabama federal judge on Sunday greenlighted the largest municipal bankruptcy in U.S. history, deeming Jefferson County eligible under state law to restructure more than $3 billion in debt from a failed sewer system project.

U.S. District Judge Thomas B. Bennett overruled objections to the Chapter 9 filing by Bank of New York Mellon Corp., the indenture trustee for county sewer warrants, and several other bank creditors. The county, Alabama’s most populous, filed for bankruptcy Nov. 9 under the weight of $3.2 billion in debt from...
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