Filed Under:

Alabama County Files Plan To Exit Bankruptcy

Alabama's bankrupt Jefferson County has filed a 101-page plan that would force creditors to lose up to 70 cents on the dollar.

In 2011, the county underwent what's been called the largest government bankruptcy in U.S. history.

It's in debt by about $4.2 billion.

Because of combination of corruption and poor management, the municipality was unable to repay money it borrowed to upgrade its sewage system.

The plan, unveiled over the weekend, would enable the county to get out of bankruptcy by December 20.

But it will pay a stiff price — residents will see big increases in their sewage bills.

The county has already had to lay off hundreds of works and cut services sharply.

By defaulting on its debts, Jefferson County is also likely to have a lot of trouble borrowing again for years.

Its creditors, which include Wall Street companies like J.P. Morgan, will have to take big hits on the money they lent.

The plan must be approved by a bankruptcy judge.

Copyright 2013 NPR. To see more, visit

WAMU 88.5

A Conversation With "Broad City" Co-Star Abbi Jacobson

What do Michelle Obama, Anna Wintour and Michael Jordan carry in their bags? Abbi Jacobson imagines the things you might find in her new illustrated book, "Carry This Book." We talk to the "Broad City" co-star about what you can learn from the contents of bags—and her success creating and starring in the hit Comedy Central show.

WAMU 88.5

New Approaches To Tackling Local Youth Hunger

The First Lady of Virginia Dorothy McAuliffe and other regional leaders are exploring new, innovative ways to combat local food insecurity.

WAMU 88.5

What Washington Really Thinks of the Rest of America

Kojo explores the surprising findings of a Johns Hopkins survey on what D.C.'s federal workers and unelected policy makers really think of the American public.


Researchers Build 'Nightmare Machine'

An MIT project rolled out just in time for Halloween uses artificial intelligence to generate horror images.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.