BRADENTON, Fla. - U.S. District Court Judge R. David Proctor yesterday continued until January a hearing on whether to appoint a receiver for Jefferson County, Ala.'s financially troubled sewer system.
A spokeswoman for Proctor said attorneys met first thing in judge's chambers and then the continuance was announced. The reason for the continuance was not immediately clear.
Proctor had set aside several days for the hearing on a receiver sought by the trustee for sewer debt bondholders, the Bank of New York Mellon, and Financial Guaranty Insurance Co. and Syncora Guarantee Inc. FGIC and Syncora insure $1.7 billion and $1.1 billion of outstanding sewer warrants, respectively.
Jefferson County commissioners and state officials are involved in ongoing negotiations with creditors in an attempt to restructure $3.2 billion of outstanding sewer debt that is in troubled auction- and variable-rate mode.
The court hearing will resume Jan. 26 at 10 a.m. Central Time at the federal courthouse in Birmingham.
