Negotiators with the county met with county’s sewer system creditors in order to begin discussing a deal. While exact details were not discussed, officials have stated that further meetings are to take place in New York during the beginning of December.
A written statement was given by officials and reported that the meeting was “productive,” but “much work” is still needed to be done before a deal can be made.
Jefferson County filed for Chapter 9 bankruptcy on Nov. 9, 2011 reporting $4.23 million in debt. The court documents show that most of the debt is related to the loss of tax on local jobs, political corruption issues and debt from the a new sewer system.
Chapter 9 bankruptcy alleviates the stress of lawsuits being filed against the county, but states that a plan must be developed to pay creditors back as well as set up a fund to help with future operations. The plan must then be approved by a U.S. Bankruptcy judge and county officials are hoping that it will be ready for approval sometime this winter.