Tentative deal reached to settle Ala. sewer debt - WSFA.com Montgomery Alabama news.

Tentative deal reached to settle Ala. sewer debt

MGN Online MGN Online

BIRMINGHAM, Ala. (AP) - The Jefferson County Commission has reached a tentative deal to reduce its multi-billion dollar sewer debt.

The county finance committee approved the deal Tuesday afternoon in a 4-1 vote. The deal still must be approved by a judge and creditors. If approved, the deal would end the largest government bankruptcy in American history.

Attorney Ken Klee has said the county would submit a plan to exit its $4.23 billion bankruptcy by the end of June. Of the total bankruptcy amount, more than $3 billion is linked to deals involving sewer financing.

Commissioners say the compromise calls for creditors with sewer warrants getting back about 60% of what they're owed. Commissioners are also mulling raising sewer rates by 4.7% over the next three years to pay the debt.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by Frankly