Reuters: Bankruptcy News: UPDATE 1-Bankrupt Alabama county to skip GO bond payments

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UPDATE 1-Bankrupt Alabama county to skip GO bond payments Mar 28th 2012, 20:44 Wed Mar 28, 2012 4:44pm EDT BIRMINGHAM, Ala., March 28 (Reuters) - Alabama's bankrupt Jefferson County will skip a $15 million general obligation bond payment due in April and wi ll not r esume the payouts while it is in bankruptcy, county commissioners unanimously agreed on Wednesday. The county defaulted on $3 billion of sewer system debt at the heart of its landmark municipal bankruptcy filing in November and must now protect its limited cash, skipping upc oming deb t payments, to provide police and basic government services, according to officials. The five commissioners blamed the missed GO payments on state legislators, who have not restored a tax providing a critical source of revenue for the county and one that was killed by a 2011 court decision. The county has slashed staff and government services because of sharp revenue drops. Jefferson County said in a news release that payments would be skipped on its Series 2001-B, Series 2003-A and Series 2004-A General Obligation Warrants and will not resume until a bankruptcy restructuring plan has been hammered out. "It is a sad day," Commission President David Carrington said in an interview. "It did not have to be this way." (additional reporting by Michael Connor in Miami; Editing by Padraic Cassidy)

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