Dynegy Holdings files amended reorganization plan based on settlement

By Caroline Salls

Pittsburgh, June 11 - Dynegy Holdings, LLC filed its expected amended plan of reorganization and disclosure statement on June 8 with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the company received court approval on June 1 for an amended and restated settlement agreement with notes trustee Wells Fargo Bank, NA, DO S1 Ltd., Loomis, Sayles & Co., LP and Claren Road Credit Master Fund Ltd., according to a company press release.

The amended and restated settlement agreement resolves all disputes, claims and causes of action between and among the Dynegy debtors and the settling parties.

Treatment of creditors will include the following:

• Holders of administrative claims, settling creditor professional fee claims, priority tax claims, priority claims, convenience claims and secured claims will be paid in full;

• Holders of a Dynegy administrative claim will receive a share of a settlement stock pool and warrants;

• Holders of general unsecured claims will receive a share of a class 3 stock pool, allocated facilities sale proceeds and a plan cash payment; and

• Holders of securities claims and equity interests will receive no distribution.

Dynegy Holdings and four subsidiaries filed for bankruptcy on Nov. 7, 2011 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 11-38111.

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