Illinois Power Generating pre-packaged reorganization plan confirmed

By Caroline Salls

Pittsburgh, Jan. 25 – Illinois Power Generating Co.’s pre-packaged plan of reorganization was confirmed Wednesday by the U.S. Bankruptcy Court for the Southern District of Texas.

Wednesday’s order also approved the disclosure statement related to the plan.

As previously reported, under the pre-packaged plan, noteholders who tendered their Illinois Power notes in a process subsequent to the expiration of an exchange offer and certified that they are eligible holders will receive a share of $100.69 million of cash consideration, $210 million of parent company Dynegy Inc. notes and 10 million Dynegy warrants.

Noteholders who tendered their Illinois Power notes in the process subsequent to the expiration of the exchange offer and who are not eligible holders will receive cash equal to their share of $100.69 million of cash consideration plus the principal amount of Dynegy notes that the non-eligible holder would receive under the plan if they were an eligible holder plus their share of $15 million, representing the estimated value of the Dynegy warrants that eligible holders will receive under the plan.

Holders of secured claims will be paid in full in cash or will receive the collateral securing the claims.

Holders of general unsecured claims will either receive cash equal to the unpaid portion of their claims or the claims will be otherwise rendered unimpaired.

Holders of intercompany claims will either have their claims reinstated or the claims will be paid in cash.

Equity interests will be reinstated on the plan effective date.

Illinois Power is a subsidiary of Dynegy Inc., a Houston-based energy company. Illinois Power filed bankruptcy on Dec. 9. The Chapter 11 case number is 16-36326.

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