Dynegy Inc. Files for Bankruptcy

Dynegy Inc. has filed for bankruptcy protection after years of wrestling with falling electricity prices. 

The Houston power company — which operates in the Midwest, Northeast and the West — tried to buy Enron in 2001 before that company's collapse.

The parent company of Dynegy Holdings says that a New York bankruptcy court has already approved its reorganization plan.

Subsidiaries that operate the company's coal-fired and gas-fired power plants were separately financed in 2011, and the company says they are not part of the Chapter 11 filing.

As debts rose to more than $5 billion last year, Dynegy worked to protect the company. Instead of selling assets to raise cash, the company reshuffled its businesses so that the parent company owned power plants and other assets, while a subsidiary issued bonds.

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...