Financial Times FT.com

Jefferson County struggles against debt

By Stacy-Marie Ishmael and Michael Mackenzie in New York

Published: April 15 2008 01:28 | Last updated: April 15 2008 01:28

Alabama’s Jefferson County, one of the most indebted US municipalities, will on Tuesday try to persuade creditors to extend the deadline for a $184m payment in its efforts to stave off default on its obligations.

Jefferson County has around $4.6bn in outstanding debt, and a default on that scale would dwarf 1994’s Orange County debacle, in which the California county defaulted on some $1.6bn in debt.

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