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Jefferson County Commissioners approved a settlement with creditors over its $3.1 billion sewer debt today, ending a three years of back-and-forth over whether the county would file for what would have been the largest municipal bankruptcy in U.S. history.The deal ends a three-year saga over the county’s $3.1 billion sewer debt, the result of a soured bond refinancing that plunged the county into dire financial straits.
According to Bloomberg, the commissioners voted 4-1 to approve the deal, which includes $1.1 billion in concessions from creditors. JPMorgan, which arranged the bad refinancing deal in 2007, will take the biggest loss.
The deal also includes annual sewer rate increases of up to 8.2% for three years, followed by annual increases of no more than 3.25.
Jefferson County was often viewed as a harbinger among those who predicted a wave of municipal collapses after the financial crisis. The county still faces a projected deficit of $41 million next year.
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