CHICAGO — The Xenia Rural Water District in Iowa has finalized a long-sought restructuring plan with its bond insurer and USDA Rural Development on $125 million of debt that the struggling agency believes will drive its return to long-term fiscal solvency.

The district has long pressed for relief from the U.S. Department of Agriculture’s Rural Development Agency on $45 million in loans and Assured Guaranty Corp., which backed the district’s $84 million 2006 bond issue and has covered shortfalls in past debt service payments.

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