Ala. County Decides Against Bankruptcy Filing

Law360, New York (October 14, 2008, 12:00 AM EDT) -- Staring down $3.2 billion in debt, commissioners in Jefferson County, Ala., decided Tuesday against filing what would have been the largest municipal bankruptcy in U.S. history.

Also on Tuesday, the Department of the Treasury informed Alabama Governor Bob Riley that debts owed by municipalities would not be backed up by the $700 billion emergency bailout plan, a spokeswoman for Gov. Riley confirmed.

The Jefferson County Commission voted 3-2 against filing for Chapter 9 bankruptcy in a decision that was widely expected, a source close to the...
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