November 12, 2012 – The number of Jefferson County sewer bond holders filing motions in bankruptcy court seeking higher sewer rates grew over the weekend and today. Today, Assured Guaranty Municipal Corp. joined in with last week’s motion by The Bank of New York Mellon, the indenture trustee for bondholders. That motion asks the bankruptcy judge to lift the automatic-stay on legal action against bankrupt Jefferson County so creditors could seek enforcement of sewer rate increases at a higher level than the county has enacted. Last week the Jefferson County Commission voted to increase sewer rates for the first time in four years. But Assured Guaranty and other creditors say the increase is too little and even less than the amount the county had agreed to before it decided to file for bankruptcy in November, 2011, citing $4.23 billion in debt. That debt includes more than $3 billion borrowed for the county’s sewer restoration project.
Link to Full Article: http://blog.al.com/spotnews/2012/11/more_jefferson_county_sewer_wa.html