Dynegy disclosure statement for reorganization plan receives court OK

By Jim Witters

Wilmington, Del., July 10 - Dynegy Holdings, LLC received approval for the disclosure statement associated with the company's modified third amended plan of reorganization, according to documents filed July 10 with the U.S. Bankruptcy Court for the Southern District of New York.

The plan includes Dynegy Holdings, LLC and Dynegy Inc.

A plan confirmation hearing is scheduled for 10 a.m. ET on Sept. 5.

Creditor treatment

As previously reported, 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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