Jefferson County Albama expects to default on its $3.2 billion sewer bonds this Friday and probably will not enter into another payment extension with its Wall Street creditors, Commission President Bettye Fine Collins said Monday.
At that point, the commissioners likely will authorize attorneys to begin bankruptcy proceedings, she said.
Collins said she had hoped a deal could be worked out without the county filing the largest municipal bankruptcy in the nation's history, but she now thinks that such a deal is unlikely.
The creditors "obviously seem to prefer bankruptcy and get 50 cents on the dollar," she said. "Bankruptcy is not pleasant. It will be expensive. We're down to the wire. I'm not happy about having to say this, but it appears to me that's the only course of action left."
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