Alabama's bankrupt Jefferson County on Thursday approved a reworked settlement plan for its landmark $4.2 billion municipal bankruptcy that increases already stiff losses for Wall Street creditors by $300 million, Reuters reported yesterday. With a 4-to-1 vote, the county commission kept Alabama's most populous county on track for a targeted 2013 end of its nearly 2-year-old bankruptcy case. The revised terms mean JPMorgan, hedge funds and creditors will recover around 53 cents on the dollar, as opposed to about 60 cents under the previously agreed terms. It also cuts the size of a bond sale the county must hold to complete its exit from bankruptcy.
