February 1, 2013 / 5:55 PM / 5 years ago

Creditor trustee in Alabama bankruptcy says no Feb 1 payment

BIRMINGHAM, Ala., Feb 1 (Reuters) - A lawyer for the creditors trustee in America’s biggest municipal bankruptcy on Friday said the trustee will not make a Feb. 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.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below