Jefferson County Researching Bankruptcy Option

Banks that hold much of the sewer debt convinced Jefferson County in 2002 and 2003 to refinance what had been mostly fixed-rate bonds.

By: Associated Press | Alabama's13.com
Published: August 25, 2008

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BIRMINGHAM, Ala. (AP) - Jefferson County Commission President
Bettye Fine Collins has told attorneys to begin research on the
impact a bankruptcy filing for the county that has a $3.2 billion
sewer debt and soaring interest rates.
Collins had been part of a 3-2 majority on the commission that
opposed filing what would be the largest municipal bankruptcy on
record. She now appears to be softening that opposition.
Banks that hold much of the sewer debt convinced Jefferson County
in 2002 and 2003 to refinance what had been mostly fixed-rate bonds
into variable- and adjustable-rate warrants that are causing the
county's financial crisis.
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Information from: The Birmingham News