No deal in Jefferson County debt crisis - WSFA.com Montgomery Alabama news.

No deal in Jefferson County debt crisis

MONTGOMERY, Ala. (AP) - Another round of talks over Jefferson County's massive sewer debt failed to result in a compromise with Wall Street creditors.

Representatives from the county, some of its lenders and the governor's office met Wednesday in Montgomery to discuss a $3.2 billion debt that has Alabama's most populous county on the verge of bankruptcy.

Gov. Bob Riley's office said the negotiations lasted for several hours without Riley being present. A statement said Riley will continue working with all sides to try to find a solution. County officials have come up with a proposal to replace risky credit arrangements with fixed-rate debt and cap annual sewer rate increases at 2.85 percent.

They say Jefferson County will likely have to file for bankruptcy after the end of the month if the talks fail.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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