by MARGARET NEWKIRK and MARTIN Z. BRAUN, Bloomberg
Jefferson County (3681MF), Alabama, will miss a $15 million general-obligation bond payment due April 2, Commissioner David Carrington said in Birmingham.
Jefferson County (3681MF) (3681MF), Alabama, will miss a $15 million general-obligation bond payment due April 2, Commissioner David Carrington said in Birmingham.
Jefferson County filed for bankruptcy in November after county, state officials, a court-appointed receiver and bondholders failed to implement a deal that would have reduced $3 billion in debt tied to the failed financing of a sewer renovation by about $1 billion. The county also has about $200 million of general-obligation bond debt and $814 million of school-construction bonds.
The decision to stop paying was difficult, said Kenneth Klee, the county’s bankruptcy attorney: “These general- obligation bonds are held by ordinary citizens who rely on the income.”
The financial crisis in the county, the state’s most populous, was caused by years of corruption and bond deals gone bad. Jefferson has laid off workers, closed courthouses and has been unable even to pick up roadkill on a timely basis.