Jefferson County, Ala., extends forbearance agreements with swap counterparties, liquidity providers

By Jennifer Lanning Drey

Portland, Ore., June 10 - Jefferson County, Ala., further extended its forbearance agreement with its swap counterparties and its standby warrant purchase agreement liquidity providers, according to county notices.

The warrant purchase agreements provide liquidity for its variable-rate demand sewer warrants.

Under the extended forbearance agreements, both the swap counterparties and the liquidity providers have agreed not to exercise any of their default-related rights before 6 p.m. ET on July 31.

The liquidity providers have also agreed to give the county until June 1 to make the default rate interest payments.

As previously reported, Jefferson County is in default on the sewer warrants.

Under the swap agreement, no payments or transfers will be made by the county or the counterparties during the forbearance period.

The swap agreements are tied to its sewer revenue warrants.

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