Small step could really be a big step
Jefferson County is taking another step to get out of the largest municipal bankruptcy in the country's history.
On Thursday Jefferson County Commissioners will vote on an agreement with creditors. These creditors hold about $105-million in general obligations warrants that were sold to fund road and other capital improvement projects.
On Tuesday, Commissioners announced the agreement. It calls for renewing payments on the debt, paying off the debt, establishing an interest rate of 4.9% and changing to a fixed rate rather than a variable rate.
The negotiations involved JP Morgan and German bank. The deal is seen as significant because JP Morgan holds a large portion of Jefferson County's massive sewer debt.
"I think it has an indirect impact. It surely sends the signal JP Morgan is at the table and talking. I don't think they would have entered into this agreement if they didn't have confidence the sewer would be resolved as well," said David Carrington, Jefferson Co. Commission President.
Commissioners will vote on the new agreement Thursday. The county hopes to have plan to get out of bankruptcy by the end of June.
