Birmingham, AL – Attorneys for Jefferson County and New York bond insurers have met to discuss a lawsuit where the companies are asking a judge to appoint someone to oversee the county's sewer system.
Jefferson County is trying to avoid filing the largest bankruptcy in U.S. history over $3.2 billion in sewer debt. But the bond insurers have filed suit asking a federal judge to appoint a receiver who they say could end the county's financial crisis.
Lawyers in the case met for several hours Monday. U.S. District Judge David Proctor scheduled a hearing for Jan. 26.
The county is struggling to avoid bankruptcy because it can't afford to make payments on bonds that were used to pay for years of work on its sewers.
(Copyright 2008 by The Associated Press. All Rights Reserved.)