Jefferson County, Alabama has pushed back mediations scheduled with creditors in April until the end of May. On November 9, 2011, Jefferson County, Alabama filed a voluntary petition for relief under Chapter 9 of the United States Bankruptcy Code.  The county’s goal, after nearly 18 months in bankruptcy related to $4 billion in debt, is to present an exit strategy to the court by June 1.  The county has been working outside of court to resolve outstanding issues with “school warrant, general obligation and sewer creditors.”  Such out-of-court negotiations will either need to result in settlement or an agreement to the county’s proposed exit strategy by at least one creditor class.  The May mediations are scheduled to be conducted by a federal mediator in Atlanta.

Sources:

Quotation from: Honora Gathings, “Jeffco bankruptcy mediation delayed,” http://www.wset.com/story/22058140/jeffco-bankruptcy-mediation-delayed, Apr. 23, 2013.

In re Jefferson County, Alabama, Case No. 11-05736 (TBB), U.S. Bankruptcy Court, N.D. Ala., KCC, http://www.kccllc.net/jeffersoncounty.

 

About these ads