AP: Birmingham may have a deal on sewer debt

Jun 4, 2013

BIRMINGHAM, Ala. (AP) — The Jefferson County Commission has reached a tentative deal to reduce its multi-billion dollar sewer debt. The county finance committee approved the deal Tuesday afternoon in a 4-1 vote. The deal still must be approved by a judge and creditors. If approved, the deal would end the largest government bankruptcy in American history. Attorney Ken Klee has said the county would submit a plan to exit its $4.23 billion bankruptcy by the end of June. Of the total bankruptcy amount, more than $3 billion is linked to deals involving sewer financing. Commissioners say the compromise calls for creditors with sewer warrants getting back about 60 percent of what they're owed. Commissioners are also mulling raising sewer rates by 4.7 percent over the next three years to pay the debt.