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Largest Ala. county approves framework for debt settlement rather than file record bankruptcy
BIRMINGHAM, Ala. (AP) ' Alabama's largest county has approved the framework for a settlement with Wall Street over $3.1 billion in debt, avoiding the possibility of immediately filing the largest municipal bankruptcy in U.S. history.
Jefferson County Commissioners voted Friday in Birmingham to settle with Wall Street investors led by JPMorgan Chase & Co.
State lawmakers now must get involved, and county commissioners say bankruptcy is still possible.
The main effect of the deal for residents would be higher monthly bills for sewer service.
Jefferson County has been trying to avoid filing bankruptcy over the sewer system debt for three years. Its problems stem from a mix of outdated sewer pipes, the economy, court rulings and public corruption.