CHICAGO — An Iowa water district’s long-awaited plan to restructure $140 million of debt — including $83 million of water revenue bonds — is now on hold due to litigation filed by Bank of America Corp. in an attempt to block a pending asset sale.

“The lawsuit puts our debt workout plan on hold,” said Marc DeLong, interim executive director of the Xenia Rural Water District. “It complicates the plan as a potential near-term solution to the district’s insolvency. We have to resolve the litigation as it’s a barrier to getting a solution that is in everyone’s best interest.”

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