The federal judge overseeing the Jefferson County, Ala., bankruptcy case has set deadlines for creditors to file proof of claims.
The general deadline for creditors’ claims is June 4, for businesses and individuals with claims before the county filed bankruptcy on Nov. 9.
Governmental units with secured or unsecured claims against the county that arose prior to the filing date must file completed proofs by Aug. 31. These can include claims for unpaid taxes.
Jefferson County filed a 156-page list of creditors in December that included everyone on the county’s payroll, vendors, other liabilities and the outstanding debt all totaling $4.61 billion.
The list also included a disputed unsecured claim by sewer system receiver John Young for $75 million, which represents the amount the county received from JPMorgan’s settlement with the Securities Exchange Commission.
Young was a state court-appointed receiver for the system until the bankruptcy judge turned it back over to the county’s control earlier this year.
In a notice accompanying the creditors’ list, the county said it disclaimed and disputed portions of its outstanding warrants considered to be limited obligation, non-recourse debt, including $4.08 billion of sewer system and school warrants.
The notice also disputed all claims held by JPMorgan, and said that the county reserved its right to assert counterclaims against the investment bank as well as to seek subordination of the bank’s claims.
