By John Galt
November 9, 2011 – 06:25 ET
With all the fun we’ve been having in the news, this blurb from Reuters went ignored by the mainstream media:
So after all the “negotiating” and promises of working something out, the story that just won’t die until it goes to court is back. From the article:
County commissioners are scheduled to vote on one of three ways to resolve the county’s soured sewer debt: accept a negotiated agreement when returned by creditors, accept it with modifications, or approve a Chapter 9 bankruptcy filing.
Creditors, including JPMorgan Chase & Co , and the county in September reached a tentative deal on a substantial reduction in Jefferson County’s $3.14 billion of sewer-system debt. But final terms have not been reached.
Just as everyone thinks the county commissioners may blink again, this blurb from the article should alert everyone to the games being played:
County Commission President David Carrington said he expects the deal to survive.
“We have lost precious time because some creditors didn’t want to sign an agreement with the county. They wanted to sign with the receiver. That would not be binding, and now that they understand that, there is a good possibility that we’ll have a settlement back by the end of this week,” Carrington said.
Should Jefferson County file Chapter 9 bankruptcy, at over $5 billion for the total indebtedness, it will be the largest in U.S. history.
A deal “should” survive even though it would appear the creditors, including Squid Jr., does not want to deal with the county in good faith apparently and hasn’t since the crisis hit the front pages of the news over three years ago. The people of Jefferson County should quit screwing around with their political leadership and demand a solution. Perhaps for once they should quit listening to the banksters and do what is best for their citizens even though it might mean a few years of painfully slow growth and elevated borrowing costs for their local governments.
Maybe Jefferson County should drop a phone call to Iceland and find out how to do it right; or just shut up, put the chains back on, say “Yessa Master” to their owners at J.P. Morgan and just go back to picking the cotton for them.