New events coming up for Jeffco bankruptcy - WBRC FOX6 News - Birmingham, AL

New events coming up for Jeffco bankruptcy

BIRMINGHAM, AL (WBRC) -

A couple of developments could happen this week to end Jefferson County's Chapter-9 Bankruptcy filing.

Starting Wednesday, the county and its creditors will be fighting in a mini-trial. The creditors want to go back to state court, to put Sewer Receiver John Young back in charge of the sewer rates. Young would be able to raise rates faster, but would first need approval from a judge in state court.

The creditors say the county's planned rate hike is too low and would not pay back the creditors fast enough. An average $2-a-month rate hike is scheduled to take place in June. The county says the increase is a "first step" and they do not want the increase to be too high for customers.

Meanwhile, Commission President David Carrington and Commissioner Jimmie Stephens are in New York to meet with hedge fund managers who own a large block of the sewer warrants. The county hopes to settle a plan for getting out of Chapter 9 with the creditors help, rather than having a solution forced on them through bankruptcy court.

The county commission rescheduled its regular meeting from Tuesday to Thursday this week.

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