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Jefferson County Bankruptcy: Judge Clears Way For Bankruptcy Filing

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March 5 (Reuters) - Alabama's Jefferson County is fully eligible for Chapter 9 bankruptcy protection and can proceed with its $4.23 billion filing, the biggest ever by an American municipality, a federal judge ruled.

Overcoming arguments by creditors that the county was ineligible for bankruptcy because it had the wrong type of debt, U.S. Bankruptcy Judge Thomas Bennett issued a ruling late Sunday in Birmingham, Alabama, saying the complex case can go ahead. (Reporting By Michael Connor in Miami; editing by Jeffrey Benkoe)

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