JeffCo sewer creditors discussing how to make $350 million in co - WBRC FOX6 News - Birmingham, AL

JeffCo sewer creditors discussing how to make $350 million in concessions

Source: WBRC Source: WBRC
JEFFERSON COUNTY, AL (WBRC) -

Jefferson County sewer creditors have responded to the county's deadline to meet $350 million in concessions.

Both sides are not saying what the response was publicly. Commissioners are seeking the concessions so that the county's plan to exit bankruptcy will be successful. Rising interest rates and additional costs for sewer improvements has forced commissioners to seek the concessions.

The sewer creditors include J.P. Morgan, bond insurers, hedge funds and liquidity banks.

"All the creditors responded by the five o'clock deadline and they are working it out the arrangements amongst themselves," Jefferson County Commissioner Jimmie Stephens said.

Stephens, along with Commission President David Carrington, went to New York last week to meet with the creditors and to present their demands. Carrington said the creditors will have to work out details of the concessions.

"The conversations are now between the creditors. Basically the county has said what it's going to do. It's up to you to resolve the issues by and between yourselves in order for the plan to move forward," Carrington said.

The Jefferson County Commission voted to rescind its existing agreements with creditors by Monday, Nov. 4 if there are no concessions. If there is no deal the commission will withdraw its plan to get out bankruptcy and could draw out bankruptcy for another year.

"We have made the concessions. There will be no more burden cast on the backs of our ratepayers," Stephens said.

Commissioners said creditors are talking now to see if they can make the plan work.

"The negotiations are ongoing in New York among the creditors. We are awaiting a response," Stephens said.

Commissioners are prepared to meet this week or next and vote to keep their existing agreements if a deal can be developed with the creditors.

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