Birmingham, AL – Already saddled with the largest municipal bankruptcy in U.S. history, Jefferson County commissioners have voted to default on more than $15 million in bond payments due next week.
Commission President David Carrington says making the payment due Tuesday would threaten the operation of county government. So the commission passed a resolution Wednesday instructing the county manager to skip the payment.
The money that's due would repay general obligation bonds. The county's bankruptcy is linked more to debt from its sprawling sewer system.
This is the first debt payment the county has missed since a federal judge cleared the way for the municipal bankruptcy to move forward.
The county cited more than $4 billion in debts last year in deciding to file the largest municipal bankruptcy ever.
(Copyright 2012 by The Associated Press. All Rights Reserved.)