Last November the United States Bankruptcy Court confirmed the County’s chapter 9 Plan of Adjustment. The County implemented the Plan on December 3, 2013, successfully selling $1.785 billion in new sewer warrants, among other things. Last week, the U.S. District Court for the Northern District of Alabama declined to dismiss as moot an appeal of the Bankruptcy Court’s confirmation order filed by several sewer ratepayers. The District Court’s ruling made no findings or rulings on the merits of the appeal or the lawfulness of the County’s Plan of Adjustment.
Today , the County has requested the District Court to allow the County to file an immediate appeal of last week’s ruling to the United States Court of Appeals for the 11th Circuit. In its ruling that the ratepayers’ appeal of the confirmation order is not moot, the District Court suggested that when the merits are considered, it could provide relief by altering a particular provision in the Plan of Adjustment relating to enforcement by the Bankruptcy Court of the County’s sewer rate covenant. If certified by the District Court, and accepted by the Court of Appeals, the County’s appeal would challenge the power of the District Court to invalidate the portion of the Plan of Adjustment under which the Bankruptcy Court retains jurisdiction to enforce the County’s compliance with its sewer rate covenant throughout the term of the new sewer warrants.
Regardless of the outcome of the County’s request to appeal last week’s ruling, and regardless of any ultimate ruling on the merits of the appeal before the District Court, we fully intend to comply with the obligations undertaken by the County when it issued the new sewer warrants, including the rate structure that was adopted by the County Commission.
