UPDATE 1-U.S. power firm Dynegy emerges from Chapter 11
Oct 1 (Reuters) - U.S. power producer Dynegy Inc, which counts billionaire financier Carl Icahn among its shareholders, said on Monday it has emerged from Chapter 11, less than a month after winning court approval for its bankruptcy plan.
The Houston-based company said it will have about $800 million in liquidity in the form of cash and will have eliminated more than $4 billion in debt through the Chapter 11 process.
In exchange for the elimination of debt and other obligations, unsecured creditors will receive equity representing a 99 percent stake in the reorganized company and $200 million in cash.
Dynegy Inc, which will have approximately 100 million shares outstanding after the reorganization, is expected to begin trading on the New York Stock Exchange on October 3 under the symbol "DYN".
Other Dynegy shareholders include a Franklin Resources Inc unit. As part of the reorganization, on September 30, Dynegy Holdings LLC merged with and into the parent company Dynegy Inc.
Dynegy Inc filed for bankruptcy in July while Dynegy Holdings filed for protection from creditors on November 7, burdened by costly power plant leases and amid a dispute over whether its parent had acted properly two months earlier in taking about $1.25 billion of its coal-powered plant assets.
Creditors of Dynegy Inc and its Dynegy Holdings LLC unit had voted overwhelmingly in favor of their joint bankruptcy reorganization plan. But some units like Dynegy Northeast Generation Inc, Hudson Power LLC, Dynegy Danskammer LLC and Dynegy Roseton LLC did not emerge from bankruptcy and remain under Chapter 11 protection.