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Posted on April 8, 2009

Alabama Senate bill would require Governor's approval before county bankruptcy

By Madison Underwood
The Governmental Affairs committee of the Alabama Senate has okayed a bill that would require the Governor's approval before a county filed for bankruptcy. If the legislature passes this bill, it would make it much more difficult for Jefferson County to declare bankruptcy on its $3.9 billion sewer debt. Governor Bob Riley has, in the past, made it clear that he's not in favor of bankruptcy, suggesting that a default that large might affect the credit ratings of the state of Alabama and its municipalities. He's also opposed bankruptcy on moral grounds. (Source: Birmingham News)
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