Judge to consider court control of Jeffco sewer - WSFA.com Montgomery Alabama news.

Judge to consider court control of Jeffco sewer

BIRMINGHAM, Ala. (AP) - A federal judge says he will decide whether to take control of Jefferson County's sewer system as elected leaders struggle to avoid what would be the largest bankruptcy in U.S. history.

U.S. District Judge David Proctor scheduled a hearing for Thursday to hear arguments on whether he should appoint a receiver to oversee sewer operations in Alabama's most populous county.

Bond insurers have asked the judge to take over the system through a receiver because elected leaders have failed to resolve a massive debt crisis involving sewer system improvements.

Jefferson County's debt ballooned to $3.9 billion earlier this month when JPMorgan Chase & Co. canceled swap contracts with the county worth some $700 million.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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