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Tuesday, Oct 2, 2012 1:15 PM UTC

Dynegy emerges from Chap. 11 bankruptcy protection

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Topics: From the Wires,

HOUSTON (AP) — Power provider Dynegy has emerged from Chapter 11 bankruptcy protection.

The Houston company, which produces and sells electricity, said late Monday that its reorganization allowed it to eliminate over $4 billion in debt.

Its new shares are expected to begin trading Wednesday on the New York Stock Exchange under the symbol “DYN.”

Dynegy Inc. filed for Chapter 11 in July after years of falling electricity prices and debt that surpassed $5 billion last year. One of its subsidiaries, Dynegy Holdings, filed for bankruptcy protection last November. As part of the restructuring, Dynegy Holdings combined itself with Dynegy Inc. on Sept. 30.

The company’s unsecured lenders get a 99 percent stake in Dynegy and $200 million in cash in exchange for eliminating debts. Stockholders receive a 1 percent stake in the new company and 5-year warrants to buy up to 13.5 percent of its common stock.

The reorganization does not include some subsidiaries, such as Dynegy Northeast Generation and Hudson Power, which remain in Chapter 11. The company’s coal and natural gas-fired power plants are also owned by separate subsidiaries that weren’t part of either bankruptcy filing.

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