Alabama county provides timeline for exiting largest US municipal bankruptcy

THE ASSOCIATED PRESS
May 10, 2013 - 8:44 am EDT

BIRMINGHAM, Alabama — An Alabama county hopes to end the largest municipal bankruptcy in U.S. history by the end of this year.

A lawyer for Jefferson County laid out its time frame for exiting bankruptcy during a hearing in Birmingham on Thursday.

Attorney Ken Klee says the county hopes to submit a plan for exiting the $4.23 billion bankruptcy by the end of June.

Klee says the plan could take effect by Dec. 20 after a hearing. But an attorney for creditors says the county's time frame may be too optimistic since negotiations are complicated.

Jefferson County filed the largest municipal bankruptcy ever in November 2011, citing more than $4 billion in debt. More than $3 billion of that is linked to corrupt deals involving sewer financing.

The county has cut services and staff.

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