Jeffco Bankruptcy

Leaders in Alabama's largest county said Wednesday a potential bankruptcy filing that could be days away would likely top $4.1 billion.  The primary problem in Jefferson County is sewer debt of some $3.14 billion that the system can no longer afford to pay.  But Commission President David Carrington said the county has another $1 billion in additional debt for school construction and other projects.  The case would easily eclipse the record municipal bankruptcy of $1.7 billion filed by Orange County, California, in 1994. But Jefferson County is still trying to find a way to stay out of bankruptcy court.  Commissioners said they still had an offer on the table to settle the debt with Wall Street and had yet to receive a formal response just a day before what could be a vote to file for bankruptcy. Talks are ongoing between lenders, county attorneys and state officials.

Associated Press