Alabama’s Jefferson County Files for U.S.’s Biggest Municipal Bankruptcy

Thursday, November 10, 2011
By Paul Martin

By Steven Church, William Selway and Dawn McCarty
Bloomberg.com

Jefferson County, Alabama, filed the biggest U.S. municipal bankruptcy after an agreement among elected officials and investors to refinance $3.1 billion in sewer bonds fell apart.
The county, home to Birmingham, the state’s most-populous city, listed assets and debt of more than $1 billion in Chapter 9 papers filed today in U.S. Bankruptcy Court in Birmingham.
The county’s bankruptcy attorney, Kenneth Klee, said the filing was necessary because talks with creditors and the receiver in charge of the sewer system built by the bonds broke down.

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