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Movement Possible in Jefferson Co. Bankruptcy

The Birmingham News

This could be an important week in Jefferson County's attempt to emerge from the largest municipal bankruptcy in U.S. history.

Al.com (http://bit.ly/Vzd38I ) reports that the county commission president and another commissioner will be in New York for meetings with hedge fund managers as they try to negotiate a deal.

On Wednesday, a federal bankruptcy judge in Birmingham will begin a hearing on a request by creditors who want to go to state court seeking rate increases for sewer service in Jefferson County.

The county commission approved rate increases last year, but lenders say the hikes should have been larger.

The county filed the largest municipal bankruptcy ever in November 2011, citing more than $4 billion in debt. Much of the debt is linked to corrupt deals involving sewer financing.

Copyright 2013 The Associated Press.

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