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Jefferson County muni bankruptcy triggers Alabama worries

Thursday, November 10, 2011 - 04:51

Nov. 10 - Atlanta Bureau Chief Matthew Bigg says the Jefferson County, Alabama, bankruptcy filing has led residents to fear job and service cuts and could affect borrowing costs of neighboring counties.

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Jefferson County Alabama file for the largest municipal bankruptcy in US history on Wednesday after a last ditch effort to restructure its more. That three billion dollars in debt fell through. -- Atlanta bureau chief Matthew bake it in Birmingham and he joins us on the phone with the latest so. Matthew what. Hearing happened at these closed door meetings mean what was the -- how did this go down. Archer that a couple things that. There's a couple of things which government which seem -- project for. Keep an insurmountable. Blockage. The first formed. Is that C two commissions. Are -- people are elected officials. Through running county -- came to conclusion that she. Critics and this has changed to terms all of the tentative agreement that -- find -- kemba. Without agreement reduced to triplet my actual bombs debt from three point 14 billion. To around two point zero followers billions. And say hello to all their -- to the final agreement. What troops stuck to that final number. Column but it is we -- according to county commission officials. The credit just came back with a number 2140. Million dollars big -- see agreed -- -- September. Commission -- traction. Walls an unacceptable change. They had already been reluctant to sign off all of the initial state. That was one major problem the second one war -- -- to do with the statement for sure. Which would have captured me to rectify. Bombs -- -- possible to enable the -- to raise a mutant track which would help to general fund. -- It didn't look at that special session was gonna be cold they didn't look at that the -- gonna be polished and that was an integral part of the deal certain. Maybe deficient that they -- -- sold -- -- pulled the trigger on the back Favre. So then what are the next steps from here I mean it is this at all and negotiating ploy. Is is definitely. A done deal. This is more than an negotiating. For the are free and all use the magistrate to crippling sewer debt crisis and social -- In -- several fault and they can struggling to avoid bankruptcy. C business community you want to avoid it. See our county commission. For the most part option for people to order. And the state government to ensure that the governor was desperate to avoid it. They come to conclusion our country is gonna happen -- that is gonna happen so cute next. That obviously the transform is a critical care to more uncertain the morning at 11 AM eastern time. And state George has been surcharge has been assigned to. To oversee the -- person. The second thing is that the term sheet now -- problems. And even overall outlook for the county cricket ball debt and its general -- And will lead to more negotiations. Through that decision eventually will be made by a charge. What impact you think this would have on residents of Jefferson County are residents of Alabama I mean obviously. It's a black guy for for more than just account in a way. I was talking very early this morning to people standing in a long line. Try to pull -- followed very cold morning. -- typical interview that contracts. And they were trying to get aligned because -- services being cut and show them it takes longer to get your contract down. I'm happy just being cop because of this crisis. Minister accomplish things and they get more trouble since. They fear they all in -- she services. Which have already been trimmed. Why our potential to damage to our Alabama but let's put it possibly the chief of a a contagion effect of raising the cost of borrowing. In the bull market for the neighboring country. And the second one is -- it says. Try all the punishment. Oprah state overrule fiscal reputation about it -- think the governor Bob Bentley wants you to avoid. -- -- Atlanta bureau chief for us. It down in Birmingham -- -- you -- a lot to be -- more -- -- today especially with -- 11 AM -- hearing coming -- thank you so much for bringing us up to speed. I'm Jen Rogers and this is writers.

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Jefferson County muni bankruptcy triggers Alabama worries

Thursday, November 10, 2011 - 04:51