The court ruled Sept. 5 that both companies met all requirements to confirm the plan, which was a necessary step for Dynegy to emerge from bankruptcy on or before Oct. 1. Dynegy and Dynegy Holdings were merge to form Dynegy Inc. prior to exiting bankruptcy.
The plan helps to strengthen Dynegy’s balance sheet by converting approximately $4 billion of senior and subordinated debt into equity. Dynegy is seeking to have the common stock and warrants that will be issued pursuant to the Plan listed on the New York Stock Exchange following emergence.
“Today’s confirmation hearing marks a significant milestone towards the finish line of Dynegy’s successful restructuring process. Our renewed financial strength and flexibility positions us well in today’s challenging power markets,” said Robert C. Flexon, Dynegy President and CEO. “We appreciate the focus and commitment of our employees, and all of the stakeholders involved throughout the restructuring process. We’re excited for our future and the combination of our motivated employees, high-quality assets and financial strength provides the foundation for success in the days to come.”
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