Creditor trustee in Alabama bankruptcy says no February 1 payment
BIRMINGHAM, Alabama (Reuters) - A lawyer for the creditors trustee in America's biggest municipal bankruptcy on Friday said the trustee will not make a February 1 payment to owners of $3.14 billion of sewer debt issued by Alabama's Jefferson County.
Gerald Mace, an attorney for creditors trustee, Bank of New York Mellon, told a bankruptcy court hearing that the distribution could not be made because of a "lack of funds".
The size of the payments drawn from sewer system revenues varies and the amount of the expected payment was not known, county officials at the hearing said.
(Reporting by Melinda Dickinson in Birmingham and Michael Connor in Miami)
- South Korea recovers first bodies from inside sunken ferry |
- Japan expands army footprint for first time in 40 years, risks angering China
- Special Report: How the U.S. made its Putin problem worse
- Vice-principal of South Korea school in ferry disaster commits suicide |
- Mediator heads to east Ukraine, seeking surrenders |