Alabama's most populous county was unable to make an $83.5 million interest payment on its enormous sewer debt Tuesday and could decide within days whether to file what would be the largest municipal bankruptcy in U.S. history.
The president of the Jefferson County Commission, Betty Fine Collins, said the county lacked the cash to make the payment. Talks continued between Gov. Bob Riley's office and Wall Street lenders, who previously extended a deadline for the payment.
Barring a last-minute deal with creditors or more extensions, Collins said the failure would put the county in default on the interest payment and, most likely, a step closer to filing bankruptcy.
A decision on whether to file for Chapter 9 bankruptcy could come soon, she said, but it won't be immediate since the five-member commission must vote on such a move.
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