Creditor sues Alabama county over sewer revenue

Feb 6 (Reuters) - Bank of New York Mellon has sued Alabama's bankrupt Jefferson County, accusing the county of improperly cutting the amount of money owed to holders of its sewer-system debt.

 

BNY claimed in a lawsuit filed Friday in U.S. Bankruptcy Court in Birmingham that the county is improperly charging attorneys' fees and other costs against the system's net revenue.

 

The bank is indenture trustee of $3.6 billion of sewer system warrants, debt that was the main cause of Jefferson County's landmark bankruptcy filing in November. An indenture trustee handles administrative aspects of loans, including watching to make sure the loan is paid.

 

A U.S bankruptcy judge last month returned control of the system to county officials from a state-appointed receiver.

 

Read Full News

 

Resources for YOU:

Bookmark and Share

Write a comment

Comments: 1

Help

tumblr visitor stats