Friday, March 07, 2008

Jefferson County Misses $184 Million Payment - News -

Jefferson County Misses $184 Million Payment - News - County commissioners have confirmed that Jefferson County has defaulted on a $184 million debt due to creditors today.

The payment was tied to the county's floundering sewer program.

Attorneys and financial advisors continue negotiations with credit companies to rewrite the terms of the county's debt in hopes of making future payments more manageable while avoiding the need to file for bankruptcy.

One UAB finance professor says the renegotiations are the county's best option.

“Jefferson County is in a good bargaining position because they can say ‘if we don’t renegotiate, we’ll file for bankruptcy,’ and while bankruptcy isn’t good for anyone, it is worse for creditors than it is for Jefferson County,” Professor Andreas Rauterkus said.

No comments: