The Xenia Rural Water District is starting down the path of financial recovery after it was able to refinance a giant debt with the United Stated Department of Agriculture.
Xenia owed USDA-Rural Development more than $45 million and has been able to extend the repayment period on the loan and lower the interest rate. The rate is now 1.875 percent and is expected to save Xenia about $20 million over 40 years.
“Xenia is grateful to the USDA for its willingness to assist the District. This refinancing gives Xenia a chance to move beyond its financial difficulties while saving its members a substantial amount of money going forward,” says Dan Lovett, chair of Xenia’s Board of Directors.
Lovett also says issues with the company that insures Xenia’s private bonds are also being resolved. Xenia is working with Assured Guaranty Corp. to come into compliance with its bond obligations and in return the company has dropped a lawsuit against Xenia.
In 2009, Xenia went broke and was unable to pay back more than $135 million it owed to the USDA and an insurance company.