Saturday, August 30, 2008

Birmingham Bailout

Also see: Birmingham is Bankrupt

"Ala. county offers plan to avoid bankruptcy; Attempts to restructure its $3.2b sewer debt" by Jay Reeves, Associated Press | August 30, 2008

BIRMINGHAM, Ala. - Alabama's largest county offered a plan yesterday to restructure its $3.2 billion sewer debt and, at least for now, put off filing the largest bankruptcy in US history.

The county had the cash to make a $2 million interest payment that was due yesterday, but Commissioner Jim Carns said officials must decide whether to continue making payments indefinitely or file for bankruptcy because its obligations far outstrip revenues from the sewer system.

Their promises are always lies!!! Sick of lying government shits!!!!!!!!!!!

A decision not to make the interest payment would place the county in default and put it one step closer to filing bankruptcy over a $3.2 billion bill linked to years of court-ordered sewer improvements and risky credit arrangements.

Nothing about the "federal bribery-and-kickback scandal involving contracts awarded on the project" in the recap, 'eh, American MSM?

See what I mean about obfuscating, readers?

Such a move would nearly double the previous record for a municipal bankruptcy, set in 1994 when Orange County, Calif., sought protection over $1.64 billion in debts.

John Moorlach, chairman of the board of supervisors in Orange County, said bankruptcy would mean short-term pain for Jefferson County. Industrial recruitment will get tougher for awhile, he said, and bond ratings will suffer. But a good recovery plan combined with stronger oversight could leave Jefferson County in better shape than before the crisis, Moorlach said in an e-mail interview.

"Chapter 9 will affect your reputation . . . but it will only be known by those in the finance industry, historians and those states bordering Alabama trying to attract businesses away," he said. "The residents, if the restructuring is done in a way that diverts current revenue sources, won't notice."

Huh? How will you NOT NOTICE the CUTS?!

Unless their is TONS of FRAUD in GOVERNMENT?!

But bankruptcy specialist Jack F. Williams said layoffs, tax, and sewer rate increases, and service reductions all are possible when a city or county seeks Chapter 9 bankruptcy protection.

Yeah, the residents won't notice that at all! America, don't you get tired of being treated like a bunch of shit-eating babies by the stink elites of government and industry?! Time to fry 'em up and EAT 'EM!!!!!!!!!!!!!

Jefferson County got into trouble after it was forced by the courts to undertake a huge upgrade of its sewage system to meet federal water standards and stop raw and partially treated waste from being dumped into streams. Jefferson is Alabama's most populous county with about 658,000 residents and includes the state's biggest city, Birmingham.


Don't think I want to move to Alabama any time soon then!!!!