BRADENTON, Fla. — More than a year after closing the books for 2012, bankrupt Jefferson County, Ala., has posted its audit for that year.
The Birmingham-based certified public accounting firm Warren Averett LLC completed the audit, which was posted on the Municipal Securities Rulemaking Board's EMMA filing system Oct. 11.
The 2012 audit is among financial documents that have been sought by some objectors to the county's Chapter 9 exit plan.
The audit shows that the county had total assets of $3.9 billion and total liabilities of $4.48 billion for a net asset deficit of $558 million at Sept. 30, 2012.
The document contains 30 notes to the financial statements, one more than in fiscal 2011, with the final note describing the county's plan to emerge from bankruptcy and how it will affect various warrants, which are similar to bonds.
The audit said if the plan is confirmed, the County Commission would realize more than $1.2 billion in concessions from investors and insurers holding $3.2 billion of sewer system warrants.
As part of the plan, the county would refund the sewer debt with the sale of $1.8 billion of warrants.
Proceeds would be distributed to investors holding the debt with most of them realizing losses between 20 cents and 35 cents on the dollar with the exception of JPMorgan.
The bank, which is the county's largest creditor, had been expected to receive $375 million of $1.2 billion it is owed. The larger loss by JPMorgan is designed to allow other sewer system creditors to receive larger returns.
However, changes in the financing plan reportedly were discussed between county officials and some warrant holders Oct. 10 and 11 in New York. County officials had said that greater concessions were necessary because of recent increases in interest rates.
While an amended refinancing plan has not been released publicly, Jefferson County planned to host rating agency analysts on Oct. 15, according to the Birmingham News.
Commissioners said previously that they hoped to get investment grade ratings for the new sewer warrants to be sold later this year. Most of the county's existing debt is rated in deep junk territory.
Creditors began voting on the county's plan of adjustment in early August and their ballots had to be returned by Oct. 7.
Some county officials have verbally said that creditors overwhelmingly voted to approve the plan, but no official results of the vote have been released through court records.
A confirmation hearing on the plan is scheduled for Nov. 12.
