UPDATE: Tuesday morning, Commission Peresident David Carrington and Commissioner Jimmie Stephens released the following statement regarding the negotiations:
"Last Friday, County representatives held a settlement conference call with all of the major sewer creditor groups: JP Morgan, the bond insurers, the hedge funds and the liquidity banks. During this call, County bankruptcy attorney Lee Bogdanoff described in detail the required concessions from each group in order to proceed to confirmation. The County also set a 5:00 pm deadline for each party to respond to the County's request. All parties responded before 5:00. Even though significant progress has been made, there remain several unresolved issues. Due to the sensitive nature of the ongoing conversations, we will not be making any further comments at this time."
A deadline for creditors to accept a modified bankruptcy plan for Jefferson County passed at 4 p.m. today.
The Jefferson County Commission wants $350 million in concessions. They say the concessions are needed because of an increase in interest rates that has occurred since the plan was originally approved.
If concessions are not granted, the bankruptcy plan would be terminated.
At this point we're still waiting to hear from Jefferson County Commission President David Carrington. He and commissioner Jimmie Stephens had been in New York the past week going over details of a modified plan that will likely close the gap.
The last time we heard from Carrington was via email Friday. His statement read:
"The county has concluded our discussions in New York City with representatives of JP Morgan, the hedge funds, the bond insurers and the liquidity banks. Even though progress has been made, more conversations are needed before the targeted level of creditor concessions is achieved. Due to the sensitive nature of the negotiations, we will have no further comment at this point in time."
When we reached Stephens, he responded with "The creditors are digesting the proposal an working amongst themselves to hopefully reach some conclusion of this in the very near future."
When it comes to closing that gap, the Commission has state it will not raise sewer rates to do it. If this deal didn't go through today, we will find out the next steps the county can take and present that information to you as soon as we have it.
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