Ch. 9 Is Not Ala. County's Ace In The Hole

Law360, New York (November 10, 2011, 9:15 PM EST) -- Jefferson County, Ala.'s $4 billion Chapter 9 filing punctuates years of wrangling with bondholders, but the perks of bankruptcy protection do not necessarily mean that the county will nail down better terms, attorneys told Law360.

After seesawing negotiations with JPMorgan Chase & Co. and other bondholders proved unavailing, Jefferson County, the most populous county in Alabama, filed the largest municipal bankruptcy on record Wednesday to address vast debts tied to the overhaul of its sewer system.

Although Chapter 9 offers the county, which includes the city...
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