BRADENTON, Fla. — Moody's Investors Service said Monday that "novel" refinancing plans proposed by bankrupt Jefferson County, Ala., and Detroit are being threatened by rising interest rates.

Federal Judge Thomas Bennett approved circulating Jefferson County's Chapter 9 exit plan and seeking creditors' votes on it Aug. 6 in Birmingham, the county seat. Creditors holding lease, school and general obligation warrants will be made whole, though some of the debt will be restructured.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.