Dynegy Reaches Accord With Creditors In Bankruptcy Case
by: Andrew Schneider, April 4, 2012 6:04:00 pm
Dynegy says the agreement ends disputes over $2.5 billion in claims related to subsidiary Dynegy Holdings. The agreement says unsecured creditors will get common stock in the reorganized company. Under the current plan, those creditors were slated to get new senior secured notes and preferred stock.
The agreement will be filed as a settlement in the Dynegy Holdings Chapter 11 bankruptcy case. Last month, a court-appointed examiner said Dynegy’s subsidiary fraudulently transferred coal-power assets to the parent company, which is not in bankruptcy protection.