Thursday, December 18, 2014

Jefferson County files bankruptcy exit plan

BIRMINGHAM, Ala. (AP) — Attorneys for Jefferson County have filed a 101-page plan to exit the largest municipal bankruptcy in American history.

The plan calls for cutting the county's $4.2 billion debt by more than $1.2 billion and raising sewer rates annually by 7.41 percent for four years. Rates would rise by 3.49 percent annually for an undetermined amount of years after that.

The plan must be approved by Thomas Bennett, U.S. Bankruptcy Judge for the Northern District of Alabama.

Bennett has scheduled a hearing to consider approving a proposed disclosure statement on Aug. 6. The statement essentially provides creditors with information about the county so they'll be able to make an informed vote on whether to approve the exit plan.

County officials are looking to exit the bankruptcy by Dec. 20.