Feb 26 (Reuters) - Alabama's Jefferson County is fighting
to stave off what would be the largest municipal bankruptcy in
U.S. history over a multibillion-dollar debt it accumulated as
it upgraded its sewer system earlier this decade.
Following is a timeline of major events related to the county's debt:
Feb 26, 2010 - A federal judge sentenced investment banker William Blount and lobbyist Al LaPierre to four-year prison terms for corrupt bond deals related to the debt.
Jan 19 - William Bell elected Birmingham mayor after the previous Mayor Larry Langford was convicted of corruption.
Nov 13, 2009 - Jefferson County sues JPMorgan Securities and JPMorgan Chase for fraud over its debt, as well as Langford and other officials.
Nov 4 - The bank reaches agreement with the U.S. Securities and Exchange Commission over a $720 million settlement in an unlawful payment scheme in the county's sewer bond financing.
Oct 28 - A federal jury finds Langford guilty of 60 counts of corruption relating to his term as president of the county commission and the bonds swaps that led to its debt.
Sept 8 - The county votes to extend a forbearance agreement with creditors on a $105 million portion of its debt. It is the latest in a series of such agreements.
Aug 18 - Blount, co-accused with Langford, pleads guilty. Al LaPierre pleads guilty in July.
Aug 14 - Alabama legislators approve an occupational tax for the county.
Aug 3 - County lays off 1,000 workers temporarily because of a separate, short-term financing crisis.
May 15 - State legislators fail to pass a county sales and occupational tax, heaping pressure on its finances.
Feb 2009 - Two 'special masters' appointed by a district judge produce a report saying that, barring government intervention, sewer rates must rise dramatically to cover debt repayments.
Aug 2008 - Alabama Governor Bob Riley takes a lead in debt negotiations on the county's behalf.
2008
Talks begin with creditors to restructure the debt and reduce service repayments. One focus is whether to raise water rates.
April 2008 - Moody's Investor Service downgrades a rating on part of the county's debt to seven notches into 'junk' status.
Feb, 2008 - Ratings agencies downgrade county debt to junk, causing a crisis as interest rates on the debt spiral.
2007
Interest rates soar on the county's variable rate auction swaps, in part due to a national crisis in the mortgage lending sector. County cannot cover its debt service payments.
2002
2007 The county commission under its president, Langford, refinances debts on the advice of consultants through interest rate, auction rate and other bond swaps.
Late 1990s - The county incurs huge debts as it upgrades the system and water rates soar as a result.
1996
The county is required to start upgrading its sewer system to comply with the federal Clean Water Act.
(Writing by Matthew Bigg, Editing by Tom Brown and Dan Grebler) Keywords: USA ALABAMA/JEFFERSONCOUNTY (matt.bigg@thomsonreuters.com; +1 404 720-2891; Reuters Messaging: matt.bigg.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Following is a timeline of major events related to the county's debt:
Feb 26, 2010 - A federal judge sentenced investment banker William Blount and lobbyist Al LaPierre to four-year prison terms for corrupt bond deals related to the debt.
Jan 19 - William Bell elected Birmingham mayor after the previous Mayor Larry Langford was convicted of corruption.
Nov 13, 2009 - Jefferson County sues JPMorgan Securities and JPMorgan Chase for fraud over its debt, as well as Langford and other officials.
Nov 4 - The bank reaches agreement with the U.S. Securities and Exchange Commission over a $720 million settlement in an unlawful payment scheme in the county's sewer bond financing.
Oct 28 - A federal jury finds Langford guilty of 60 counts of corruption relating to his term as president of the county commission and the bonds swaps that led to its debt.
Sept 8 - The county votes to extend a forbearance agreement with creditors on a $105 million portion of its debt. It is the latest in a series of such agreements.
Aug 18 - Blount, co-accused with Langford, pleads guilty. Al LaPierre pleads guilty in July.
Aug 14 - Alabama legislators approve an occupational tax for the county.
Aug 3 - County lays off 1,000 workers temporarily because of a separate, short-term financing crisis.
May 15 - State legislators fail to pass a county sales and occupational tax, heaping pressure on its finances.
Feb 2009 - Two 'special masters' appointed by a district judge produce a report saying that, barring government intervention, sewer rates must rise dramatically to cover debt repayments.
Aug 2008 - Alabama Governor Bob Riley takes a lead in debt negotiations on the county's behalf.
2008
Talks begin with creditors to restructure the debt and reduce service repayments. One focus is whether to raise water rates.
April 2008 - Moody's Investor Service downgrades a rating on part of the county's debt to seven notches into 'junk' status.
Feb, 2008 - Ratings agencies downgrade county debt to junk, causing a crisis as interest rates on the debt spiral.
2007
Interest rates soar on the county's variable rate auction swaps, in part due to a national crisis in the mortgage lending sector. County cannot cover its debt service payments.
2002
2007 The county commission under its president, Langford, refinances debts on the advice of consultants through interest rate, auction rate and other bond swaps.
Late 1990s - The county incurs huge debts as it upgrades the system and water rates soar as a result.
1996
The county is required to start upgrading its sewer system to comply with the federal Clean Water Act.
(Writing by Matthew Bigg, Editing by Tom Brown and Dan Grebler) Keywords: USA ALABAMA/JEFFERSONCOUNTY (matt.bigg@thomsonreuters.com; +1 404 720-2891; Reuters Messaging: matt.bigg.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.