Possible Bankruptcy For Jefferson County?

Alabama's most populous county is on the brink of filing bankruptcy over its $3.2 billion sewer debt.

By: Christian Stapleton | WKRG-TV
Published: September 26, 2008

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BIRMINGHAM, Ala. (AP) - There's still no deal to avoid a
possible bankruptcy filing by Jefferson County.
Talks are continuing. But an agreement between the county and
creditors expires on Tuesday, and officials are considering whether
to file for bankruptcy if there isn't a deal by then.
Speaking in an interview on Thursday, Gov. Bob Riley said his
optimism over a settlement is fading. That's because the sides
aren't making the needed concessions to reach an agreement.
The county is on the brink of filing bankruptcy over its $3.2
billion sewer debt. The crisis occurred because interest expenses
rose sharply this year following years of risky debt deals by
county officials.