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Jefferson County Commissioner Says 80% Chance Of Chapter 9 Bankruptcy Filing

Tyler Durden's picture




 

With ES trading at 45% below average volume for this time of the day (read: massive explosion on vapor volume as is de rigeur), we doubt anyone is actually trading or will notice this, but for any carbon based forms out there, the latest news on Jefferson county may be just a little notable: There is an 80% chance that Jefferson County, Alabama, officials will vote to file for Chapter 9 bankruptcy today, Commissioner Sandra Little Brown said before the panel was set to meet to consider the option. Is this just posturing to force the creditors to agree to the debtor's terms, or an actual reflection of the truth, we shall fund out this afternoon, when the meeting ends and the standstill expires.

 

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Fri, 08/12/2011 - 09:39 | 1553904 iNull
iNull's picture

The largest county in Alabam, and one of the largest in the US, no>

Fri, 08/12/2011 - 09:44 | 1553916 TheTmfreak
TheTmfreak's picture

Hmmmm. I didn't know this fact thanks for bringing it to my attention.

It really wouldn't surprise me considering Birmingham is a big metro, and its utterly disgusting. Does Alabama even have anything going for it?

Fri, 08/12/2011 - 09:51 | 1553944 iNull
iNull's picture

Q: Does it have anything going for it?

A: Yes, I think the people always have something. I feel bad for picking on this one county. Good people. Just bad government. Really bad government.

Fri, 08/12/2011 - 09:53 | 1553949 janus
janus's picture

football, bitch!  and of course hickory smoked pork butts.

PS. we're so fucking awesome we gave up trying long ago.

Fri, 08/12/2011 - 10:13 | 1553975 iNull
iNull's picture

Ready to smoke a peace pipe, or, is it still war on? I'm cool either way. I prefer peace to war, but, if it's war that you want...

so be it.

Fri, 08/12/2011 - 10:30 | 1554093 janus
janus's picture

this is a cultural thing:

i grew up fist-fighting my best friends on an almost daily basis (and an hour later, it was like nothing happened -- but, by the time we were in middle school, we were the baddest mother fuckers Andrew Jackson middle willl EVER see).  in the south, an insult is an underhanded complement.  the only reasons i would ever debate someone is 1) i respect their opinion 2) i doubt my own sufficent to demand someone put me in check (i sincerely want to be correct, and i'm always on the prowl for a better idea than the sorry ones floating around my little mind).

it's like this, iNull -- i believe iron sharpeneth iron...in fact i know it to be true emperically.

it's time for men to once again be men...not meatheads, but certainly not prissy fags anymore (my apologies to stout homos).

warmest regards,

janus

Fri, 08/12/2011 - 10:10 | 1554023 papaswamp
papaswamp's picture

36% of the state is on food stamps...

Fri, 08/12/2011 - 10:51 | 1554208 janus
janus's picture

i forgot something else, but it has to do with something else, something i've already mentioned. 

alabama is proud, PROUD, to host the GREATEST (and i'm still a big imus fan) radio host of all time, of any genre -- PAUL FEINBAUM!!!

bow down and give some respect, bitchez!!!

and if you like college football, you will LOVE the feinbaum show -- i think it's on the satellite radio thing for you people who live beyond the broadcasting radius of alabama.

janus rarely, if ever, gives a recommendation regarding pop culture -- but i give this guy a big 5 stars (six, really...okay, one tiny lil jew joke...so what?)

tune in, bitchez!

but other'n that; yup, we're pretty shitty...but we shoot a mean pistol, buddy. 

bang, bang,

janus

Fri, 08/12/2011 - 11:17 | 1554313 Cow
Cow's picture

Birmingham...greatest city in Alabam.  There ain't no place like Birmingham.

http://www.youtube.com/watch?v=0PZB6TWNw-o

 

Fri, 08/12/2011 - 12:12 | 1554490 janus
janus's picture

somehow i'd never heard that...thanks

Fri, 08/12/2011 - 14:12 | 1554915 John Self
John Self's picture

Rumor has it that Shelby County has been covertly buying JeffCo debt, in hopes of coming out of the reorg with an equity position....

Fri, 08/12/2011 - 14:56 | 1555120 janus
janus's picture

that's one of the things i've heard too

Fri, 08/12/2011 - 09:41 | 1553908 GIANTKILR
GIANTKILR's picture

A year ago this would have been big news, now not so much.

Fri, 08/12/2011 - 09:58 | 1553963 janus
janus's picture

no such thing as old news on ongoing stories...

anyway, i was hearing this exact thing last week; but now i'm hearing something very, VERY amusing...accounts for that other 20%.  I won't say what it is now (don't want to embarrass myself), but it may SHOCK the world.

we're a bit off down here, don't let anybody fool ya (the heat gets in the head and starts yankin wires); so if there's a place for 'creative' economic thinkin, B'ham may be it.

the god vulcan does tower over the city after all (look him up, he don't play),

janus

Fri, 08/12/2011 - 09:46 | 1553925 navy62802
navy62802's picture

Forget consumption numbers ... this is the story du jour.

Fri, 08/12/2011 - 09:48 | 1553929 iNull
iNull's picture

Sorry about the commercials, but the 20s of you life will be worth it.

 

http://www.southparkstudios.com/full-episodes/s13e06-pinewood-derby

Fri, 08/12/2011 - 09:47 | 1553930 Deepskyy
Deepskyy's picture

This is either Bullish, or Transitory, or both, or possibly a soft patch.  Not sure yet.

Wait what?

 

Fri, 08/12/2011 - 09:48 | 1553932 LoneStarHog
LoneStarHog's picture

Rhetorical Question:  Why didn't the CNBS bitch ask Jamie Dimon about JPMs involvement with Jefferson County when that SOB Dimon was WAVING the American flag?

Fri, 08/12/2011 - 09:50 | 1553940 Alienated Serf
Alienated Serf's picture

hell yeah, JPM owns this one

Fri, 08/12/2011 - 09:51 | 1553945 fuu
fuu's picture

She's not paid to be a "reporter" or a "journalist", she is paid to be an "actor" reading the script she is given.

You knew that I know I just felt like replying.

Fri, 08/12/2011 - 10:40 | 1554159 janus
janus's picture

Because he was mistakenly carrying a copy of the koran instead of the Bible?

Jamie Dimon is not eligable to sit on the throne of JPM anyway; he was born in Abstentia (which is a bit east of Kenya).

Fri, 08/12/2011 - 09:49 | 1553938 silvertrain
silvertrain's picture

Most of the motherfuckers are broke, some of those get bridge loans and pile on more debt trying to solve there debt problem..Fuck em, time to pay up..
Meanwhile, chicagoland looks to be getting back on its feet,

http://www.nbcchicago.com/blogs/ward-room/Why-Illinois-Cant-Afford-its-D...

Fri, 08/12/2011 - 09:51 | 1553942 LoneStarHog
LoneStarHog's picture

I guess until they finally are buried they can still vote?

Fri, 08/12/2011 - 10:01 | 1553969 Rodent Freikorps
Fri, 08/12/2011 - 10:42 | 1554162 janus
janus's picture

you seem like a good enough guy; you really wanna provoke me on a friday morning before i hit the lake?

Fri, 08/12/2011 - 11:49 | 1554415 Rodent Freikorps
Rodent Freikorps's picture

How could simple census numbers provoke you? Do you hate facts?

Let's rock.

Fri, 08/12/2011 - 12:32 | 1554544 janus
janus's picture

nothin in the world wrong with facts; but i believe it was disraeli who said, "there are lies, damned lies and statistics."

by posting this information, you're tacitly positing that b'ham's problems are a function of its demographic bulges.  you see a spike in colored-folks and you assume others will fall for the same reflexive assumtions those 'facts' impelled in you.  furthermore, you've conflated the concepts of poverty, financial mismanagment and predatory capitalism into a tidy syllogism; of which you seem to assume a causal and ordered relationship from mismanagement unto poverty unto prey of predators.  if only it were so easy i would consult you for financial advice...don't expect a call.

B'ham is a banking city; it's perhaps more savy than you think.  the fix was in to begin with.  this could've been fargo.  no, white people are never tempted by teaser rates; are they, rodent?  the only thing that really brings this to the fore it the timing -- this is going to go down all over america...it's always the first and last we focus on.  so, why isn't this happening in jackson, ms.?  pray tell?  or memphis? or any other southern city brimmin with blacks and of a similar size.

rodent investing advice:

forget those silly numbers like earnings and whatnot; just scan their ethnic distribution...he's got an app for that -- it'll shade the complexion of any corporation, community or co-op to represent its algorythmic racial index...or...be right, buy white!

so, you can see, i loves me some facts!

and all in all can only fall/

with a crushing but meaningless blow/

and there are no truths outside the gates of Eden,

janus

Fri, 08/12/2011 - 12:58 | 1554587 Rodent Freikorps
Rodent Freikorps's picture

What utter bullshit.

Other cities with the same demographics have the same problems, regardless of geographic location. Why is that?

Jackson is a state capitol. They don't go bankrupt.

Why didn't you mention Oakland, or Camden?

Fri, 08/12/2011 - 10:26 | 1554076 MrBinkeyWhat
MrBinkeyWhat's picture

This is all about the sewerage treatment system. JPM got a hold of the financing, add in some crooked pols (is there any other kind), and whamo! $500 water bills to fund the Zillion dollar treatment system...all tp protect some endangered frog or something.

http://www.rollingstone.com/politics/news/looting-main-street-20100331

Fri, 08/12/2011 - 10:26 | 1554080 Overflow-admin
Overflow-admin's picture

"de rigueur" Tyler, not "de rigeur"

Fri, 08/12/2011 - 13:12 | 1554657 janus
janus's picture

so i guess for you it's poseur, not poser (sorry it had to be you, admin...couldn't help myself there -- you opened yourself up, though; so t'aint my fault).

SK8 or die, bitchez!

brass monkey/

that funky-monkey,

janus

Fri, 08/12/2011 - 10:26 | 1554082 oogs66
oogs66's picture

how these guys have avoided bankruptcy for so long is what amazyes me

Fri, 08/12/2011 - 10:29 | 1554088 Downtoolong
Downtoolong's picture

we doubt anyone is actually trading or will notice this

Unfortunately Jefferson County (i.e. Main Street) isn’t too big to fail, and too far from Wall Street for anyone there to care.

Fri, 08/12/2011 - 12:52 | 1554594 navy62802
navy62802's picture

-

Fri, 08/12/2011 - 11:25 | 1554346 ThirdCoastSurfer
ThirdCoastSurfer's picture

What a joke!

The County is holding out over relative pennies in the aggregate amount of the write-down. Something like $117m of a total debt of $4.3b if bankruptcy is chosen; and this doesn't include the impact on Birmingham or Alabama. The debate over the rate increases has already been won. It has been agreed to an increase of 8% for 5 years from a current monthly base of something like $38. I don't know about the fund for the indigent that is to be funded by the bondholders but the total amount there is like $5 million.

No way they default.

All this hemming and hawing is just like the debt ceiling debate in Congress, the new standard, it's somehow supposed to reassure us that hiring a bankruptcy attorney at $950 an hour and stalling forever proves that they did everything they could to get the best deal they could - while negotiating from the edge of a cliff! 

Fri, 08/12/2011 - 11:52 | 1554428 zerozulu
zerozulu's picture

There are hundred ways to avoid default. It is just a distraction from real problems. A drama, played one after another. Flirting with people's misery.

Fri, 08/12/2011 - 11:41 | 1554389 zerozulu
zerozulu's picture

They can sell a piece of their highway to the creditors. That's what whole country will have to do soon.

Fri, 08/12/2011 - 12:26 | 1554528 Augustus
Augustus's picture

The EPA is the true source of the problem.

The city was ordered to construct the sewer system and incurred the monsterous costs.  Besides paying the fines in the millions.

The financing screwups and the plundering by the pols simply added to the costs that could never be paid in the first place.

It is convenient to blame a banker who actually wrote checks to fund this deal, a deal mandated by the govt.  If there was not a lender for the funding, all of Birmingham would be hosting federal troops again to prevent bathroom flushing.

Fri, 08/12/2011 - 13:39 | 1554785 Jonas Parker
Jonas Parker's picture

Wheeee! There goes the first domino!

Sat, 08/13/2011 - 02:39 | 1556576 yang46
yang46's picture


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