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After hovering near the brink of insolvency for nearly three years, Alabama’s Jefferson County finally has a plan to settle its $3.2 billion sewer debt and hopefully avoid the largest municipal bankruptcy in U.S. history.In an interview with Birmingham’s WBRC TV station, Jefferson County Commission President David Carrington said county officials had finalised a plan to present to creditors that includes a fixed-rate repayment plan with a fixed term, and would be backed by the state of Alabama’s good credit.
Talks between the county and its sewer creditors have made substantial progress since the state stepped in last month with a “credit enhancement” offer, breaking an extended stalemate. The county has been battling bankruptcy since the sewer bond financing soured in 2008.
Jefferson County has since laid off more than one-third of its workforce, and made deep cuts to public safety, transportation, and the county court system.
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