Defaulted County Threatens To End Talks With Hedge Funds

Dec 20 2012 | 9:39am ET

Jefferson County, Ala., isn't too thrilled with the latest turn in its bankruptcy talks with hedge funds.

The county, which includes Birmingham, has been in negotiations with hedge funds and other holders of its defaulted sewer warrants. But last week, the hedge funds won permission to depose three county commissioners in advance of a possible lawsuit.

Jefferson County said it would end the talks if the commissioners were asked about settlement talks they've held with major creditors. U.S. Bankruptcy Judge Thomas Bennett, who is overseeing the county's bankruptcy, the largest municipal bankruptcy in U.S. history, said he would bar any questions that could interfere with negotiations.

The hedge fund creditors are led by Brigade Capital Management, Claren Road Asset Management, Fundamental Advisors and Monarch Alternative Capital. The sides met in New York last week and in Los Angeles last month.

"I'm not saying we're close yet, but we're at least talking," county Commissioner Jimmie Stephens said.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR