BIRMINGHAM, Ala. (AP) — The Alabama county that filed the largest municipal bankruptcy in U.S. history has worked out an interim agreement with a sewer bond trustee, agreeing to pay up to $5.5 million a month and that it no longer will withhold sewer system revenues for certain expenses.
The Birmingham News ( ) reports that Wednesday's emergency bankruptcy hearing was requested by some of the companies that insure scheduled payments will be made on the warrants. Those surety companies were facing having to make up millions of dollars this month because the county was retaining a portion of its net revenues for certain capital expenditures.
The county filed for bankruptcy in December after three years of negotiations didn't resolve a massive debt linked to borrowing for the county's sewer system.
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