BRADENTON, Fla. - Jefferson County Commissioners on Friday unanimously approved another 60-day forbearance agreement negotiated with insurers, swap counterparties, and banks as they continue to seek to restructure the $3.2 billion of sewer debt owed by Alabama's largest county.

Most of that debt is in troubled auction- and variable-rate debt on which interest rates skyrocketed because of the subprime meltdown. Failed debt remarketings forced banks to hold $850 million of variable-rate warrants. The county also had failed auctions on some of its $2.2 billion of auction-rate securities resulting in higher interest rates.

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