BIRMINGHAM, Ala. (AP) - Leaders of Alabama's most populous county have voted to file an estimated $4.1 billion bankruptcy, the largest municipal bankruptcy in U.S. history.
The Birmingham news reports the Jefferson County Commission's action came after spending about six hours over two days meeting with its lawyers to discuss legal options. Those options included a Chapter 9 bankruptcy filing and a settlement with creditors on the county's $3.14 billion sewer debt.
Commissioner Jimmie Stephens made the motion to file bankruptcy, saying it's time to resolve the issue.
The county has been trying for several years to find a way to resolve its sewer debt crisis and fix its fiscal 2012 county general fund budget, which commissioners have said needs another $40 million.
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