Dynegy, Dynegy Holdings file joint plan; confirmation hearing Sept. 5

By Caroline Salls

Pittsburgh, July 13 - Dynegy Holdings, LLC and Dynegy Inc. filed an amended plan of reorganization and related disclosure statement, according to an 8-K filed Friday with the Securities and Exchange Commission.

As previously reported, the court has approved the disclosure statement for a modified third amended plan in both Dynegy Holdings' and Dynegy's bankruptcy cases.

The companies said in the 8-K that the disclosure statement orders allow Dynegy and Dynegy Holdings to begin soliciting formal creditor votes on the plan and to modify the plan and the disclosure statement so they constitute a plan and disclosure statement for both debtors.

The orders also allow Dynegy and Dynegy Holdings to modify the plan solicitation materials to reflect Dynegy's Chapter 11 filing.

According to the 8-K, the joint plan and disclosure statement were amended to reflect these modifications.

Under the plan, Dynegy Holdings will be merged with and into Dynegy, with Dynegy being the surviving entity, which will then emerge on the plan effective date as reorganized Dynegy.

Creditor treatment

Treatment of creditors under the joint plan 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.

The deadline for voting on and for objecting to the joint plan is Aug. 24. The plan confirmation hearing is scheduled for Sept. 5.

Dynegy filed bankruptcy on July 6 in the U.S. Bankruptcy Court for the Southern District of New York. Dynegy Holdings and four subsidiaries filed for bankruptcy on Nov. 7, 2011. The cases are being jointly administered under case number 11-38111.

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