Birmingham, AL – A bankruptcy judge in Birmingham has limited the power of Jefferson County sewer system receiver John S. Young.
U.S. Bankruptcy Court Judge Thomas Bennett issued a memorandum opinion Friday. This means that Bennett has jurisdiction in matters involving the sewer system, not Young.
It marks a victory for county officials in their struggle with Young, who wanted to remain in complete control and who had suggested the possibility of steep hikes for ratepayers.
Bennett rejected Young's request to be exempt from the automatic protection from creditors that typically comes with a bankruptcy filing.
Jefferson County filed the largest municipal bankruptcy in U.S. history last month after three years of negotiations failed to resolve a massive debt linked to borrowing for the county's sewer system.
(Copyright 2012 by The Associated Press. All Rights Reserved.)