Ala. County Seeks Largest US Municipal Bankruptcy

Law360, New York (November 9, 2011, 7:30 PM EST) -- The governing board of Jefferson County, Ala., grappling with $3.14 billion in sewer debt, voted Wednesday to file the largest municipal bankruptcy in U.S. history after settlement talks with creditors broke down.

The county commission had met in executive sessions for two days, mulling options that included bankruptcy or a settlement with creditors before commissioners made the 4-1 vote in favor of Chapter 9 protection.

“The county has negotiated extensively and in good faith with its creditors and their representatives about restructuring the county's debts out...
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