Federal Bankruptcy Judge Thomas Bennett has ordered that an automatic stay associated with Jefferson County’s bankruptcy will remain in effect through midnight Jan. 6. The stay freezes lawsuits and actions by creditors, or anyone acting on the county’s behalf.
When Jefferson County filed for Chapter 9, it simultaneously ordered John Young to relinquish control of the sewer system.
Young was appointed by an Alabama state court in late 2010 as receiver of the sewer system and its finances. He has filed a motion asking Bennett to exempt him from the automatic stay. Until Bennett reaches a final decision, Young remains in charge of the sewer system.
Jefferson County on Nov. 9 filed the country’s largest municipal bankruptcy, which includes $4.2 billion of debt. Most of the debt is associated with the sewer system.
