Alabama's Jefferson County, which is trying to restructure $3.2 billion of troubled sewer-system debt, on Monday agreed to a standstill deal covering $120 million of the county's variable-rate general obligation debt.
By a vote of 4 to 1, the Jefferson County Commission endorsed a forbearance agreement until Sept. 30 with JPMorgan Chase (JPM.N: Quote, Profile, Research, Stock Buzz) and Bayerische Landesbank (BLGGgg.F: Quote, Profile, Research, Stock Buzz) for GO warrants the county sold in 2001.
The banks, in their role as liquidity facility providers, were holding the warrants, which could, if not sold to investors, ignite $20 million of accelerated debt service payments by the county this month and another $20 million early next year, according to Standard & Poor's Rating Services.
