Alabama

Moody's said Monday that "novel" refinancing plans proposed by bankrupt Jefferson County, Ala., and Detroit are being threatened by rising interest rates and raise risks for investors.

Jefferson County, Ala.'s disclosure statement won approval in Birmingham federal court Tuesday, after Federal Judge Thomas Bennett struck down objections to the bankruptcy plan.

Objections to Jefferson County, Ala.'s Chapter 9 bankruptcy disclosure statement will be heard by a federal court Tuesday as the county opposes $2.6 billion in claims for payments made by one objector.

Jefferson County, Ala., has proposed an aggressive timeline for exiting bankruptcy but objections have been lodged before the judge can even confirm the schedule.

Jefferson County, Ala., said that the IRS completed an examination of the county's 2006 lease revenue warrants with no change in tax exempt status.

Officials overseeing Jefferson County, Ala.'s municipal bankruptcy say they understand the challenges and stigma that Detroit now faces.

Jefferson County, Ala., has chosen Citi as senior underwriter for a $1.89 sewer warrant refinancing to take place in December after emerging from Chapter 9 bankruptcy.

Detroit bondholders may have a new worry after a judge ruled that Jefferson County, Ala., could have paid legal bills for its bankruptcy from cash that was going to pay warrant holders owed $3 billion.

Bankrupt Jefferson County, Ala., is seeking bids from underwriting firms to assist with its $1.89 billion sewer warrant refinancing obligation later this year.

Alabama's Jefferson County expects to propose a closing agreement to the Internal Revenue Service within a few weeks on nearly $3.1 billion of outstanding sewer revenue warrants.

Settlements with most of the creditors holding Jefferson County, Ala.'s $3.1 billion of defaulted sewer debt should help pave the way for a smooth Chapter 9 exit.

Jefferson County, Ala., has negotiated another agreement to settle payment on $138 million of defaulted sewer debt held by liquidity banks.

The 11th Circuit Court of Appeals has postponed oral arguments on several issues relating to Jefferson County, Ala.'s bankruptcy case until Jan. 15.

Jefferson County, Ala.'s bankruptcy judge is being asked to reconsider postponing a case by sewer system ratepayers who say they will be unfairly impacted by a deal with major creditors.

A hearing is set for June 27 on Jefferson County, Ala.'s motion to delay sewer system-related litigation. The county is also asking for postponement of appeals before the 11th Circuit Court.

Moody's Investors Service says agreements with most investors in Jefferson County, Ala.'s defaulted sewer warrants would result in a 60% overall recovery rate, which is consistent with the agency's Ca rating.

The federal judge overseeing the case against former JPMorgan bankers Charles LeCroy and Douglas MacFaddin denied the Security and Exchange Commission's request to set a trial date.

Jefferson County, Ala.'s sewer debt deal Tuesday may help it exit the country's largest municipal bankruptcy but it could leave several unresolved legal issues important to the municipal bond market.

Creditors are asking the 11th Circuit Court of Appeal in Atlanta whether a bankruptcy judge can remove a state-court appointed receiver. Jefferson County is appealing the judge's ruling on the use of sewer system revenues during bankruptcy.

Larry Langford, who orchestrated Jefferson County's failed sewer financings, refuted reports of his death but said he is quite sick and has been denied a request for early release from prison.