JPMorgan Chase & Co. (JPM) Financial News - Jefferson County Bankruptcy Filing May Not Block Future Credit
JPMorgan Chase & Co. (JPM)
Jefferson County Bankruptcy Filing May Not Block Future Credit
2011-08-04 04:12:07
Quote: “If a municipality
effectively restructures and emerges from Chapter 9 with a
strong balance sheet, it should have the same access to the
credit markets as any entity having similar credit
characteristics.â€
U.S.
Bankruptcy CourtJPMorgan Chase & Co. (JPM) The commission is scheduled to meet today
in Birmingham at 2 p.m.
Another meeting is scheduled for Aug. 9 and interviews with
three commissioners yesterday left open the possibility that a
vote may again be delayed.
Sewer-System Debt
On Aug. 2, commission President David Carrington said there
are probably “30 sticking points†in talks with creditors over
restructuring $3.1 billion of sewer-system debt. The county has
asked bondholders to forgive $1.3 billion of the debt, while
creditors have offered to write off $1 billion.
Bankruptcy CodeChicago.
Bankruptcy wasn’t considered in most cases because of
concern that a filing “would have a significant and permanent
effect on a municipality’s ability to go out and borrow money,â€
Esser said in an interview.
Jefferson County officials said they share that fear.
“Access to the credit markets in the future is absolutely
one of the major concerns that one must address in contemplating
bankruptcy,†Jefferson County Commissioner Jimmie Stephens said
in an e-mail. Commissioner Sandra Little Brown said through an
aide, Walter Mitchell, that she agreed with Stephens.
‘No Memory’
Los Angeles. He currently represents the Los
Angeles Dodgers Major League Baseball team, which sought Chapter
11 protection in June. Bennett and Levinson aren’t involved in
the Jefferson County negotiations.
interest rates as before filing, Bennett said. The same
should be true for municipalities, and any difference in credit
terms would be “nominal,†he said.
Since it left bankruptcy, Orange County has issued more
than $2 billion in debt, county spokesman Howard Sutter said...Open whole article (external link)