Alabama Judge Agrees to Appoint Jefferson County Sewer Receiver

BRADENTON, Fla. — Alabama Circuit Court Judge Albert Johnson ruled Tuesday that he would appoint a receiver for Jefferson County’s sewer system, which is saddled with nearly $3.2 billion of variable- and auction-rate warrants.

The Bank of New York Mellon sought a receiver as trustee for the non-recourse warrants on which the county has defaulted.

“We are pleased with the court’s decision to appoint a receiver, which will help protect the interests of the bondholders,” said Kevin Heine, spokesman for the bank.

The county’s attorney could not immediately be reached for comment.

The judge still must appoint the receiver and determine what powers the receiver will have over setting sewer rates.

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