Thursday, August 21, 2008
Birmingham, Al headed toward chapter 9 bankruptcy?
The Jefferson County, Al government appears to be on the verge of filing for Chapter 9 bankruptcy. This will be a historic filing that will make national headlines if it happens. The local Mayors in Jefferson County today urged the county government to file for Chapter 9 before September 1 if they cant work out a settlement agreement with Wall Street investors on the sewer bonds. The only other large populated county in recent history that filed for bankruptcy was Orange County, Ca. All of this in Jefferson County, Al though stems mainly from corrupt local government officials securing bonds from corrupt bankers on Wall Street to repair the sewer system in Birmingham. Then Wall Street started calling the bonds due in recent months and the interest payments just got so out of control the county hasnt been able to make them. So they find themselves on the verge of bankruptcy today.