Reuters: Bankruptcy News: UPDATE 1-Alabama county, creditors OK new terms to end bankruptcy

Reuters: Bankruptcy News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

The Next Generation in Online Meetings GoTo Webinar is a new, affordable, do-it-yourself Web event service that doesn't require a consultant. Get $10 off after your complimentary trial. From our sponsors

UPDATE 1-Alabama county, creditors OK new terms to end bankruptcy Oct 30th 2013, 21:50 Share this Email Print Reprints Wed Oct 30, 2013 5:50pm EDT By Michael Connor Oct 30 (Reuters) - Alabama's Jefferson County and Wall Street creditors have reached agreement on a revised plan to end the second-largest U.S. municipal bankruptcy, county officials said on Wednesday. The new terms were not made public, but county officials had said they needed $350 million more in concessions because interest rates had risen since June, when JPMorgan, hedge funds and other creditors reached a tentative settlement to end the $4.2 billion bankruptcy. County commissioners will consider the revised plan on Thursday, when details will be released, Jefferson County officials said in a statement. Alabama's biggest county filed for Chapter 9 bankruptcy nearly two years ago, mostly because of overwhelming sewer debt, but its case was dwarfed by Detroit's bankruptcy filing last summer. "The Jefferson County Commission will consider a modified financing plan that incorporates the agreements in principle we have reached with representatives of all of the major sewer creditor groups: JP Morgan, the bond insurers, the hedge funds and the liquidity banks," the county officials said. The June agreement, which still must be approved by a federal judge, handed big losses to JPMorgan and others, and relied on a planned sale of $1.9 billion of new bonds to replace soured sewer-system bonds with a face value of about $3.1 billion. But two weeks ago, county officials threatened to withdraw the deal, saying rising interest rates had shot up over the summer and reduced the amount of new bonds the county could issue, and they asked creditors to make further concessions. Analysts at Moody's Investors Service said this week that the June plan translated into losses of about 40 cents on the dollar for sewer-system creditors. The new concessions sought by the county would add 10 cents to those losses, the Moody's analysts said. Spokesmen at creditors JPMorgan and BNY Mellon had no comment. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions