Judge deals setback to bankrupt Ala county
BIRMINGHAM, Ala. (AP) — Bankrupt Jefferson County has to look for another way to pay some bills now that a judge has blocked it from using sewer system revenues.
U.S. Bankruptcy Judge Thomas Bennett issued a ruling Friday that rebuffs the county's desire to use money from the sewer system to pay legal fees and other expenses.
Commission President David Carrington says the county can continue to operate the sewer system, which is at the heart of Jefferson County's decision last year to file the largest municipal bankruptcy in U.S. history over some $4 billion in debt
The county's creditors argued against sewer system revenues to pay lawyer bills.
Aside from the sewer debt, Jefferson County's operating budget is in trouble because courts struck down a key tax.