Dynegy Subsidiary Files Chapter 11

A subsidiary of Houston-based power company Dynegy Incorporated is preparing to file for Chapter 11 bankruptcy protection as early as this evening.

businessman covering fundsThe filing by subsidiary Dynegy Holdings would protect shareholders of the parent company, including billionaire investor Carl Icahn, according to reports by the Wall Street Journal and others.

Dynegy, which sells electricity to grids and utilities in the Midwest, the Northeast, and the West, has been hurt by lower power prices over the last two years. In April, the company hired financial advisers to help it restructure its debt and to try to sell assets to avoid a bankruptcy filing.

Dynegy shares fell 35¢, or 10.6%, to close at $2.95.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...