CHICAGO — Facing insolvency as it struggles with $140 million of debt, the Xenia Rural Water District in Iowa is pinning its hopes on a workout plan that relies on a rate increase and sale of district assets to raise revenue plus $45.4 million in debt relief.

The district approved a 22% rate increase in March and has a tentative offer of $110.5 million from the Des Moines Water Works to buy its assets.

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