Jefferson County, Alabama, filed a plan to end the biggest U.S. municipal bankruptcy later this year by cutting $1.2 billion in principal payments to investors holding defaulted sewer-related debt.

Less than $100 million of the county’s $4.2 billion in debt will be paid with no changes to the terms of the original lending documents. Sewer warrant holder JPMorgan Chase & Co. will collect 31 percent of what it is owed, while some general obligation bondholders will lose the right to collect penalty fees and a higher, default interest rate.

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