Bankrupt Alabama county eyes debt cuts topping $1 billion
(Reuters) - Alabama's Jefferson County will within two or three months file a workout plan that calls for reducing the bankrupt local government's $4.23 billion of debts by more than $1 billion, according to the county's top elected official.
Filing a plan of adjustment, which is being readied as the county negotiates privately on terms with some creditors and battles in court with others, is a key step toward ending Jefferson County's landmark 2011 bankruptcy but it must be approved by a federal judge.
"Our final plan will include a reduction of more than a billion dollars," Jefferson County Commission President David Carrington said in an interview, declining to discuss details. "But there are other elements, too, that are just as important, like lower interest rates and extended payoff times."
Bankruptcy lawyers say there are too few precedents involving big local governments in bankruptcy to say what a plan might entail, though debt concessions such as extending the terms of bonds or reducing interest payments are frequently included.
More at http://news.yahoo.com/bankrupt-alabama-county-eyes-debt-cuts-topping-1-120605972--sector.html .