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| Jefferson County bankruptcy |
According to news agency Reuters, the decision of the bankruptcy protection it is expressed through a vote by the five member board of commissioners of Jefferson County, on Wednesday, with the composition 4 to 1. The commissioners are elected officials and not by political appointment.
Jefferson County considered not able to take on debt that has been more than U.S. $ 5 billion that filed for bankruptcy court protection, known as Chapter 9.
Capital of Birmingham, Jefferson County's debt began to grow in the mid-2000s after a decade of finance newest sewer system. Jefferson County relies on bond sales to fund the project.
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| bankruptcy protection |
Debt was increased along with rising interest rates. Since 2008, Jefferson County began to face the problem of debt repayment. Value exceeds that had borne the burden of Orange County in California, when filing for bankruptcy protection in 1994.
Though Jefferson County was once known as the richest region in the state of Alabama. Population of about 660.00 soul, Jefferson County into a number of locations and at the same luxury complex has pockets of poverty.
Governor of Alabama, Robert Bentley, worried that Jefferson County bankruptcy protection could undermine the economic image in his province. Numerous efforts have been deployed, ranging from termination of employment of staff to budget cuts.
There is concern that these problems can impact rising interest rates for bonds of other areas in Alabama. A number of creditors, including JPMorgan Chase & Co., Claim to also have offered debt relief payments. However, no satisfactory agreement is reached.
