9 November 2011
Jefferson County Files for Chapter 9 Bankruptcy Protection
At its meeting Wednesday afternoon, November 9th, the Jefferson County Commission voted to file for Chapter 9 bankruptcy protection. County Commission President David Carrington described the Commission’s decision to petition the U.S. Bankruptcy Court as “a necessary one reached after much thoughtful consideration.”
The goal is to restructure more than $4 billion of County debt, including $3.14 billion incurred by the County sewer system. Chapter 9 of the Bankruptcy Code, which was established to protect governments from the interruption of their essential governmental services, will enable the County to develop a new plan to address its debts.
The County is already working with its advisors to prepare a Chapter 9 plan to adjust the County’s debts and to emerge from Chapter 9 as soon as it can, Carrington added. Emerging from Chapter 9 would be facilitated by enactment of legislation by the Alabama State Legislature to address the County’s General Fund shortfall.
For the full news release issued following the Commission’s meeting on November 9th, click here.
For the Chapter 9 resolution approved by the Commission on November 9th, click here.
For the County's Chapter 9 petition, click here.
For a special message to Jefferson County employees regarding the filing, click here.
For a special message to Jefferson County vendors regarding the filing, click here.
To see more information concerning the Jefferson County Bankruptcy, including Important Dates, Deadlines & Documents: Some dates, deadlines and documents in the Debtor's Bankruptcy Cases that may be relevant to interested parties, use this link. http://www.jeffersoncountyrestructuring.com
The Court has created a website where certain documents will be made available to the public. Documents that are not available through this website are available at the Court or through an electronic database. Follow the link provided for more information.
United States Bankruptcy Court – Northern District of Alabama
Case Number 11-05736-TBB-9