Alabama's Jefferson County yesterday threatened to cancel a plan for exiting its $4.2 billion bankruptcy unless Wall Street creditors agree to more concessions, possibly delaying the resolution of America's second-largest municipal bankruptcy filing, Reuters reported yesterday. Four members of the county commission unanimously voted to withdraw a $1.84 billion debt-cutting plan within 15 days if the creditors fail to give concessions they say are now needed because interest rates have shot up since the workout plan was agreed to in June. The plan, which was approved by creditors in early October but still requires court approval, relies on a $1.9 billion sale of new sewer system bonds to replace soured debt. Officials say there is now a $350 million shortfall in the agreement because interest rates have risen much more sharply than anticipated. A late 2013 sale of refinancing sewer warrants is planned.
