CHICAGO — Iowa’s Xenia Rural Water District has proposed a five-year restructuring plan that calls for investors who hold $83 million of revenue bonds to receive full payment. However, it hinges on the willingness of other creditors to “share in the pain” of restoring the district to fiscal solvency by forgiving some debt, said interim executive director Marc DeLong.

Under the proposal, bondholders would continue to receive their principal and interest as scheduled. District revenues fell short of meeting the June and December 2010 debt service payments owed on its 2006 water revenue bonds but CIFG Assurance North America Inc. covered the shortfalls.

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