Jefferson County Creditors Seek to Appeal Bankruptcy Ruling

Monday, 19 Mar 2012 10:31 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Creditors of Jefferson County, Ala., plan to appeal a federal judge's March 4 ruling that rejected their demands to throw out the biggest U.S. municipal bankruptcy.

Bank of New York Mellon Corp., trustee for the county’s sewer debt, JPMorgan Chase & Co., which owns more than $1 billion of the sewer warrants, and other creditors filed a request for court approval to appeal the ruling simultaneously with filing notices of their intent to appeal, according to a filing on Monday in U.S. Bankruptcy Court in Birmingham.

Jefferson County filed for bankruptcy in November, after county, state officials, a court-appointed receiver, and bondholders failed to implement a tentative agreement that would have required its sewer debt to be reduced by about $1 billion.

Creditors had argued that Alabama state law requires cities and counties to have issued bond debt to be eligible for bankruptcy. The U.S. Bankruptcy Code allows states to set limits, or even bar, their cities and counties from filing for bankruptcy.

Because Jefferson County’s long-term debts were called warrants, not bonds, in all legal papers, Alabama law prevented the bankruptcy, creditors argued.

“An immediate appeal of this threshold issue will materially advance the ultimate termination of this case,” lawyers for the creditors said in today’s filing. “If the appellate court determines that the county is not eligible, as the movants contend, then the county’s Chapter 9 case will be dismissed and the parties will avoid tremendous costs and unnecessary litigation.”

The case is In re Jefferson County, 11-05736, U.S. Bankruptcy Court, Northern District of Alabama (Birmingham).


© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Gifts-for-Favors Trial Starts Monday for Ex-Gov. McDonnell, Wife

Saturday, 26 Jul 2014 12:22 PM

Former Virginia Gov. Bob McDonnell, his reputation already tarnished and his political future destroyed by a gifts-for-f . . .

Former WWE Champ Catches Suspected Burglar

Saturday, 26 Jul 2014 10:33 AM

A former WWE champion known as Daniel Bryan chased two burglary suspects he saw exiting his Phoenix home this week and s . . .

FBI Found Bomb-Making Cache in Home of Giffords Shooter

Saturday, 26 Jul 2014 07:11 AM

Jared Lee Loughner, who killed six people and shot former Arizona lawmaker Gabrielle Giffords in a 2011 rampage, kept bo . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved