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PrintJudge Limits Sewer Receiver's Authority in Jefferson County Bankruptcy Case
U.S. Bankruptcy Judge Thomas B. Bennett in Birmingham ruled that when Jefferson county filed its Chapter 9 bankruptcy case, the state court that appointed the receiver lost its authority over the sewer system.
Jefferson County filed bankruptcy in November of 2011, more than a year after a state court gave receiver John S. Young Jr., control of the sewer system.
The county, state officials, the receiver and bondholders failed to implement a tentative agreement that would have required the sewer debt to be cut by about $1 billion, rates to increase and the Alabama Legislature to enact new laws to benefit the county’s finances.
The bankruptcy is tied to a sewer refinancing tainted by political corruption.
Jefferson County was the 13th Chapter 9 bankruptcy filing last year.
Read the full story at Bloomberg.com
