BRADENTON, Fla. — A bankruptcy court judge in Alabama Wednesday afternoon
Judge Thomas Bennett said allowing the appeals to go forward would help “materially advance the progress” of the country’s largest municipal bankruptcy case.
The appeals result from rulings by the judge over various aspects of the county’s $3.2 billion of defaulted sewer warrants, including Bennett’s decision to remove the state court-appointed receiver from the county’s sewer system and his ruling allowing the county to determine the amount of revenue available for sewer debt-service payments.
Bennett’s rulings have been appealed by Bank of New York Mellon, as indenture trustee for the sewer warrants, and other creditors. A cross appeal has been filed by Jefferson County.
The appeals involve a question of law for which there is no controlling decision and a matter of public importance, Bennett said.
Market observers have watched the case for its potential to set new precedent in the treatment of debt payments in future municipal bankruptcy cases.
