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Bankrupt Ala. County Finds Salvation in Euro Bank

Feb. 14, 2013 10:30pm

Jefferson County, Ala., approved a deal Thursday with European Depfa Bank Plc to cut interest charges on approximately $162 million of the bankrupt county’s school debt, Reuters reports.

“Although the ‘plan support agreement’ saves only about $1 million a year for the county, which in 2011 filed a $4.23 billion municipal bankruptcy,” the report notes, “the resolution passed by the Jefferson County Commission said the deal would likely help the county hammer out a broader adjustment plan with its Wall Street creditors.”

Bankrupt Jefferson County, Ala., Has Reached a Deal with European Depfa Bank

Jefferson County Commission president David Carrington
signs Chapter 9 bankruptcy papers (Photo Source: AP Photo)

Blaze readers may recall that Jefferson County, home to Birmingham, was plunged into the largest bankruptcy in U.S. history after a disastrous, ill-planned, and corrupt planned sewer-system racked up over $3.2 billion in debt.

“Some creditors and county officials are meeting privately to work out a possible plan likely to require reductions in interest rates and other concessions by creditors such as JPMorgan Chase & Co.,” Reuters notes.

“The plan is needed for Jefferson County to exit bankruptcy protection. The county filed for bankruptcy in November 2011,” the report adds.

Depfa is based in Ireland but supported and run by the German government.

“As part of severe cost cutting, which has seen current fiscal year spending shrivel by $107 million to $205 million, county officials eliminated in-patient care at Cooper Green used mostly by poor people in Birmingham,” the report adds.

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Comments (15)

  • applehill
    Posted on February 15, 2013 at 3:05pm

    Jefferson County is the most screwed up place in Alabama. They are so corrupt. I hate even going to Birmingham. It’s like our own little crap hole New York in Alabama. Corruption, and greed rule Jefferson County.

    Report this comment

    applehill  
  • semihardrock
    Posted on February 15, 2013 at 10:13am

    Will these Banks ALSO have an open ended, never ending, low interest line of credit account. Who will keep printing the Euro to fund American Teachers Unions like they do here in US? Talk about starting a WAR! I guess the Euro will ALSO have to pay for 200 year old American Slavery redemption. Will Jesse and AL be on the Board of Directors for this “merger?”

    BUYER BEWARE!

    This will open up a whole can of worms with International Laws and what CAN and CANT be taught in classrooms according to the UN once accepting this “Money”

    Report this comment

    semihardrock  
  • marybethelizabeth
    Posted on February 15, 2013 at 8:36am

    Texas was proactive and sold their public roads to a Spanish firm.

    Report this comment

    marybethelizabeth  
  • media-bias-steals-elections
    Posted on February 15, 2013 at 2:51am

    Gee, maybe it would be cheaper to just give every adult a year’s supply of diapers?

    What are they doing?

    Report this comment

    media-bias-steals-elections  
  • spirited
    Posted on February 15, 2013 at 12:36am

    Crooks, crooks .and more croocks.

    The EU –huh?
    >hmm

    Report this comment

    spirited  
  • lonestarbill
    Posted on February 15, 2013 at 12:34am

    So plan B is back up the county with the rock-solid Euro?? I guess plan C is to look to a Mexican bank for Pesos. Watch how this plays out. It will portend how the rest of the overspent counties and municipalities will deal with the financial and social upheaval.

    Or, the Fed could just create some more money, and give it too them. Come on, Ben and Barak, don’t be stick-in-the-muds. Show us what great custodians of America’s finances you are. Don’t worry it won’t cost you a dime. It will cost you lots and lots of dimes in lost purchasing power.

    Report this comment

    lonestarbill  
  • Chancellor
    Posted on February 15, 2013 at 12:26am

    Wonder why the EU is going down hill quickly………

    Report this comment

    Chancellor  
  • bamanana
    Posted on February 15, 2013 at 12:15am

    I grew up in B’ham during the 60′s do any of you remember democrat police chief Bull Connor? Democrat governor Wallace? Democrats were hateful racist then & now. No wonder the county is broke ran by democrats!

    Report this comment

    bamanana  
  • RJJinGadsden
    Posted on February 14, 2013 at 11:42pm

    What can I say? Its the Birmingham area. I could sit here and list a good number of names from the top of my head of elected leadership from both the city and county who are still in Federal Penitentiaries and State Prisons. Heck, our last Democrat Governor is still in the Federal Pen. Oh yeah, B’ham/JeffCo is nothing but Dems still.

    Report this comment

    RJJinGadsden  
  • DZ-015
    Posted on February 14, 2013 at 11:00pm

    From the numbers given in the article, this is more a respite then salvation.

    Report this comment

    DZ-015  
  • JEANNIEMAC
    Posted on February 14, 2013 at 10:44pm

    A foot in the door for the EU.

    Report this comment

    JEANNIEMAC  
  • Saff SGT
    Posted on February 14, 2013 at 10:44pm

    you cant spend more than you take in. I can show all of you Liberals how run City’s how to balance a check book its easy. stop spending you jerk offs,Benefits, cut them all you dont deserve them if it bankrupts the town or city whats wrong with you jerks.?? this is so simple a child that can add can do a better job.

    Report this comment

    Saff SGT  

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