A federal judge in Birmingham last week extended the deadline for when final briefs are due in the suit brought by bond insurers and a bank trustee representing bondholders against Jefferson County seeking the appointment of a receiver for the county's troubled sewer system.
Judge David Proctor ordered reply briefs be filed by April 15. The documents are in response to a hearing held March 26 on an emergency motion for the receivership sought by Syncora Guarantee Inc., Financial Guaranty Insurance Co., and Bank of New York Mellon.
Proctor last week also denied a motion by the county seeking to dismiss a supplemental complaint filed by Syncora, FGIC, and the trustee, which outlined events of default on the county's sewer bonds. The judge also denied a request by the county to stay the receivership proceedings.
In addition, Proctor reportedly also ordered Jefferson County and the bond insurers to pay a $797,224 bill submitted by two special masters who were appointed to do a comprehensive review of the sewer system, according to the Birmingham News.
