Eric Rothstein, a county utility rate consultant, said that Jefferson County, Ala.’s bankruptcy deal with JPMorgan Chase & Co. and other creditors would lock in more than $1.4 billion in concessions without the risk of suing the bank, Bloomberg News reported today. Rothstein said yesterday that those savings are a safer proposition than the $1.6 billion that could be won in a lawsuit that opponents of the county’s bankruptcy exit plan want to pursue. Rothstein was testifying at the start of a hearing on whether to approve Jefferson County’s bankruptcy-exit plan, which is built on concessions from JPMorgan and other creditors. The proceeding is set to continue today before Bankruptcy Judge Thomas Bennett, who will decide whether to approve the plan or side with two groups of lawyers who want to sue the bank and others for their role in issuing more than $3 billion in debt that was tainted by a bribery scandal.
