Jefferson County Headed Toward Default

BIRMINGHAM, Ala. (AP) - Jefferson County Commission President Bettye Fine Collins says the county is likely to default on part of its $3.2 billion sewer debt Tuesday, but not file for bankruptcy. A so-called standstill agreement with sewer system creditors expires Tuesday. Once that happens, creditors can demand payments the county says it can’t afford.
Collins says the county has all but ruled out, for now, authorizing attorneys to begin a filing under Chapter 9 of the federal bankruptcy law and signing another agreement with
creditors, its fifth since April 1.

Talks between Gov. Bob Riley and creditors to find a solution to the sewer debt crisis continue and, Collins says, a settlement still could be reached by Tuesday.