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Creditors in Alabama bankruptcy to miss on February 1 payment
Reuters: Business News
Fri, 1 Feb 2013
BIRMINGHAM, Alabama (Reuters) - A lawyer for the creditors' trustee in America's biggest municipalbankruptcy on Friday said the trustee will not make a February 1 payment to owners of $3.14 billion of sewer debt issued by Alabama's Jefferson County.
Despite the scare of recent bankruptcies and downgrades, municipalities have the resources to continue making bond payments, while looming tax increases likely won't affect muni demand, says Morningstar's Jeff Westergaard.
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