Ala. County Approves Deal Over $3.2B Bond Debt

Law360, New York (September 16, 2011, 4:37 PM EDT) -- Jefferson County, Ala., on Friday approved a settlement with Wall Street creditors over $3.2 billion in bond debt, averting what would have been the largest municipal bankruptcy on record.

The county's commissioners voted 4-1 to approve the deal, which includes about $1.1 billion in concessions from JPMorgan Chase & Co. 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.

The deal approved Friday is just the framework for the...
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