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Last updated 4:58AM ET
March 8, 2021
Alabama
Alabama
Decision On Jefferson County Debt Crisis Delayed
(2008-09-05)
(APR - Alabama Public Radio ) - Wall Street is taking more time to respond to a plan to restructure Jefferson County's $3.2 billion sewer debt and avoid the largest municipal bankruptcy in U.S. history.

Creditors were supposed to respond this week to a new financial plan offered by the county. But a spokesman for Gov. Bob Riley, Jeff Emerson, said Friday there had been a delay, and no answer was expected before Monday.

The county offered the plan to creditors during a meeting overseen by Riley last week. It includes sewer rate hikes capped at 2.85 percent annually and no tax increases.

Jefferson County leaders brought the governor into the talks after they were unable to resolve the crisis. The county's financial problems stem from risky financing agreements and soaring interest payments brought on by troubled credit markets.

(Copyright 2008 by The Associated Press. All Rights Reserved.)
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