Oct 1 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
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
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
Other Dynegy shareholders include a Franklin Resources Inc
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
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.