North Jefferson News, Gardendale, AL

August 12, 2011

County passes on bankruptcy, will negotiate directly with creditors

From staff reports
North Jefferson News

— The Jefferson County Commission avoided a declaration of Chapter 9 bankruptcy in the sewer debt crisis, instead opting to negotiate directly with creditors for a new settlement that would prevent both large rate increases and bankruptcy.

The commission took the action after a lengthy closed-door session Friday, then during an open session in which commissioners expressed considerable displeasure with negotiations thus far. The commission rejected the creditors' latest offer unanimously.

At the behest of Gov. Robert Bentley, the commission set a new deadline of September 16 for action on a new settlement.

We'll have more on this story as it develops.