Wednesday, June 05, 2013

Jefferson County, Ala., Reaches Bankruptcy Deal

Jefferson County, Ala., Reaches Bankruptcy Deal - NYTimes.com:
"The refinancing agreement covers debt held by creditors that include JPMorgan Chase, which holds about $1.22 billion of the sewer debt, the biggest block; three bond insurers; and seven hedge funds, according to a term sheet circulated in a meeting of the county commission on Tuesday.
The terms call for these creditors to receive about $1.84 billion for the $2.4 billion of debt they now hold. The concessions were weighted most heavily toward JPMorgan, the term sheet said, “to increase the recovery of other sewer creditors.”
The bank is giving up $842 million, or about 70 percent, of the face value of its debt, according to people briefed on the negotiations. "

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