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The Bond Buyer

High Stakes Seen for Investors in Jefferson County Appeal

June 17, 2015

As Jefferson County, Alabama’s bankruptcy case moves through the appeals process, investors in municipal securities are watching the 11th Circuit Court of Appeals, which is deciding whether investors who enabled the financing that permitted the county to exit its bankruptcy will lose a key security feature.  The bankruptcy court’s oversight of Jefferson County’s plan of adjustment for the period of time that refunding warrants are outstanding is the security feature in question, and the case has significant implications for municipal bond investors that rely on court oversight or other security enhancements when making investment decisions. In an interview with The Bond Buyer, Jim Spiotto discussed the context and implications of the case.

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