CHICAGO — Frustrated over a lack of movement on a proposed restructuring, Assured Guaranty Corp. is asking an Iowa court to name a receiver to oversee the Xenia Rural Water District which has struggled to repay $81 million of outstanding revenue bonds insured by the company.

Assured's request — which Xenia is fighting — is the latest development in the district's battle to remain afloat. The district's water revenues had long fell short of what was needed to cover debt service on the 2006 bonds although it did make a June payment and expects to cover its Dec. 1 payment. It depleted reserves and began tapping insurance coverage to cover shortages in 2010.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.