Bondholders of Jefferson County, Alabama, who last month won a court ruling shielding them from some payment reductions, face a new battle in the biggest U.S. municipal bankruptcy after starting talks with county officials.

The trustee for bondholders asked the judge overseeing the case for access to details about the insolvent sewer system, which owes creditors about $3.1 billion. The details will help bondholders determine the value of the system, which serves as their collateral, lawyers for the trustee, Bank of New York Mellon Corp., said yesterday in court papers.

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.