Creditors holding most of the massive sewer debt that bankrupted Alabama's Jefferson County have agreed to deals that could help end the largest U.S. municipal bankruptcy, with JPMorgan Chase & Co. agreeing to a $842 million "haircut," Reuters reported yesterday. The deals, approved yesterday by county commissioners, appear to clear a path for the county to win acceptance by a federal judge of a workout plan to resolve the landmark $4.2 billion bankruptcy, filed in November 2011. If implemented, the workout and the deals would impose the largest losses on municipal bondholders by a big U.S. local government since the 1930s. JPMorgan, a big holder of the county's $3.1 billion of sewer warrants, agreed to give up about $842 million of the $1.218 billion of sewer debt it holds, according to a county document.
