Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Court Denies Creditors' Document Request in Alabama Bankruptcy Case
Author: Joel R. Glucksman
Date: February 8, 2013
Key Contacts
Back
In the ongoing bankruptcy case of Jefferson County Alabama, Wall Street creditors who petitioned the court for access to county documents relating to city sewer-system rates will not be permitted to view the records, a bankruptcy court has ruled.
U.S. Bankruptcy Judge Thomas Bennett denied a request by creditors to examine the documents used by policymakers in the county to determine and set sewer-system rates, which the creditors argue are too low, according to Reuters. The trustee for the bondholders, Bank of New York Mellon, argues that the rates – which are a central part of the county’s municipal bankruptcy filing – and the information used to set them are central to future court proceedings, during which creditors will try to increase the rates. The bondholders argue that the rates passed on November 6 are too low and will not enable the county to make principal and interest payments on the debt in the future.
Roughly $3.14 billion of the county’s debt is the result of sewer system construction and financing costs.
Judge Bennett disagreed with the creditors’ claims and sided with the county, which said the claims are without merit and violate laws that guarantee policymakers an element of privacy when making certain decisions, Reuters reports.
“The trustee would run roughshod over the privileges protecting the county’s communications with its lawyers and the lawyers’ communications with retained experts,” the county said in a brief.
Although the county will not be required to release this information to creditors, Judge Bennett did not specify if officials at the consulting firm CH2M Hill – which worked on the sewer projects – would be required to answer questions during upcoming bankruptcy hearings. He said he would rule on the matter if it was brought forth in future proceedings.
Jefferson County, Alabama, filed for Chapter 9 protection under bankruptcy law in 2011. Although proceedings are still ongoing, the county has been forced to cut expenses significantly and slash hundreds of jobs in the meantime.
- Practices: Bankruptcy & Creditors' Rights
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Court Denies Creditors' Document Request in Alabama Bankruptcy Case
Author: Joel R. Glucksman
In the ongoing bankruptcy case of Jefferson County Alabama, Wall Street creditors who petitioned the court for access to county documents relating to city sewer-system rates will not be permitted to view the records, a bankruptcy court has ruled.
U.S. Bankruptcy Judge Thomas Bennett denied a request by creditors to examine the documents used by policymakers in the county to determine and set sewer-system rates, which the creditors argue are too low, according to Reuters. The trustee for the bondholders, Bank of New York Mellon, argues that the rates – which are a central part of the county’s municipal bankruptcy filing – and the information used to set them are central to future court proceedings, during which creditors will try to increase the rates. The bondholders argue that the rates passed on November 6 are too low and will not enable the county to make principal and interest payments on the debt in the future.
Roughly $3.14 billion of the county’s debt is the result of sewer system construction and financing costs.
Judge Bennett disagreed with the creditors’ claims and sided with the county, which said the claims are without merit and violate laws that guarantee policymakers an element of privacy when making certain decisions, Reuters reports.
“The trustee would run roughshod over the privileges protecting the county’s communications with its lawyers and the lawyers’ communications with retained experts,” the county said in a brief.
Although the county will not be required to release this information to creditors, Judge Bennett did not specify if officials at the consulting firm CH2M Hill – which worked on the sewer projects – would be required to answer questions during upcoming bankruptcy hearings. He said he would rule on the matter if it was brought forth in future proceedings.
Jefferson County, Alabama, filed for Chapter 9 protection under bankruptcy law in 2011. Although proceedings are still ongoing, the county has been forced to cut expenses significantly and slash hundreds of jobs in the meantime.