Alabama's bankrupt Jefferson County agreed to transfer $5.5 million to bondholders, extending a temporary deal to split cash from its insolvent sewer system with creditors while awaiting a ruling from a federal judge, Bloomberg News reported yesterday. The agreement with Bank of New York Mellon Corp., trustee for bondholders owed more than $3 billion, allows the county to begin several sewer upgrades using cash it holds. The agreement will last until June 29, or until U.S. Bankruptcy Judge Thomas B. Bennett makes a final decision on how to split sewer revenue between bondholders and construction projects the county says are needed to improve the system.
